WASHINGTON | By Pablo Pardo | Federal Reserve’s Beige Book is like a breeze of fresh air for those who think that economic analysis relies too much on data and math. The famous Book is made just by using non-systematic, non-quantitative inputs. Maybe that is not too effective to estimate until the last decimal the future evolution of the GDP deflator, but it is extremely precise to determine the current state of affairs of the economy.
MADRID | By Alex García and @masaenfurecida |
SAO PAULO | Guest post by Benjamin Cole at Historinhas | No serious democrat contends that obscurantism, opacity and secrecy are handmaidens of good government. Indeed, closed doors are properly and universally regarded as cardinal sins, while transparency and accountability as gateways to working democracies. Yet the public is barred from meetings of the most powerful economic policymaking body in the United States—the Federal Open Market Committee, the decision-making body of the Federal Reserve Board, wherein monetary policy is decided.
MADRID | By Julia Pastor | Abengoa’s strategy for 2013 included the creation of a company holding concessional assets to go public in the U.S. market. The first step came on Monday when the Spanish firm submitted a draft registration statement to SEC for a yield company. So-called yieldcos in Wall Street’ jargon are financial vehicles that hold assets generating stable and predictable cash flow. The price of the operation remains unknown but its goal would be to raise about $1 billion for the company to continue reducing debt. The Seville-based company specialised in technology solutions for energy and environment sectors is listed in Nasdaq since October 2013.
SAO PAULO | By Marcus Nunes | The strong counteracting monetary policy response to permanent Social Security benefit increases likely explains why their effects were relatively short-lasting and did not spread to broader economic indicators, say Christy and David Romer.
WASHINGTON | By Pablo Pardo | Germany’s Foreign Affairs Minister, Frank-Walter Steinmeier, finishes his two-day visit to Washington today with at least some unintended achievement: the U.S. and Germany agree on the importance of a truly independent and democratic Ukraine. The revolution in Kiev and the menacing attitude of Russia have prompted an unexpected rapprochement between Berlin and Washington. However, a real warming up of US-German relations seems improbable.
NEW YORK | By Robert Johnson via Next New Deal | The pensions crisis has far-reaching implications for the future of the U.S. economy: the state and local government sector is about 14 percent of the American workforce. What broke the system, and how do we fix it? Beyond the economic crisis, which put enormous pressure on state and municipal budgets, poor decision-making and the influence of big money interests has led to the underfunding of some state and city public pensions.
SAO PAOLO | By Marcus Nunes | Let´s see. For his memoirs as Fed Chairman Greenspan pocketed 8 million from Penguin. Given PCE inflation Bernanke should get at least 9 million from the same editor. But Bernanke´s book is worth more. Greenspan presided over the Great Moderation. Great Moderations don´t give rise to dramas as does a Great Recession (Lesser Depression).
MEXICO CITY | By David Brunat | It’s crystal clear: the automotive industry is going to drive the Mexican economy soon, says the country’s Automotive Industry Association AMIA, who predicts that in 5 years they will be producing 4 million units -and replace Japan as the second-largest exporter of cars to the United States.
MADRID | By Laura Alcaide (Guest post) | Spaniards, and Europeans in general, are reluctant to let lobbies participate in the political arena. Although it is true that these powerful groups can move the threads behind the scenes, as it happens with many industries in Washington, they can also make consumers’ voices heard and help citizens to fight nepotism and corruption.