New risks and setbacks again threaten Europe’s economic sentiment.
Fed monetary policy
UBS analysts explain some key aspects of Fed’s challenging task starting in September.
China’s unexpected decision to devaluate its currency triggers uncertainty in the markets.
An upcoming Fed interest rate hike now seems to be one of markets’ main focal points and concerns.
SAO PAULO | By Marcus Nunes| The St Louis Fed Regional Economist has an interesting article: The Ups and Downs of Inflation and the Role of Fed Credibility. Although they likely don´t realize it, it reads like “last rites” to the present system.
SAO PAULO | By Marcus Nunes | In a recent post John Taylor leans on Bob Hall to criticize NGDP Targeting. He goes: “In his paper at the recent Jackson Hole conference, Bob Hall criticized nominal GDP targeting, citing his 1994 paper with Greg Mankiw. Bob argues that “A policy of stabilizing nominal GDP growth would require contractionary policies to lower inflation when productivity growth is unusually high. Such a policy might easily trigger a spell at the zero lower bound.”
NEW YORK | By Ana Fuentes | Americans blame Bush more than Obama, who seems to be benefiting from the current economic stability. However, everything could change once the Fed stops injecting QE steroids.