The Japan Story: A Lesson For Central Bankers Everywhere
It is a simple story of failure, but one that fits the facts. It´s also based on a simple premise: An inflation obsession that took hold in 1974.
FED
“Now is the time for making gestures in the ECB”
While Yellen bet on increasing rates, China’s slowdown concerns Draghi, but he is not considering further stimulus for the time being, says Gabriel Marqués at Intermoney.
Post Fed… it seems not all are happy!
LONDON | BNP Paribas | Even after a very dovish FOMC meeting…the USD reaction has been muted. BUT the USD has strengthened against the EM currencies…
Rates: Back to the waiting game
The FED not only held unchanged its rates in its last FOMC meeting last week. It plunged investors into utter disarray by delivering an extremely dovish message on future action. The prospect of a hike this year loses steam while bewildered markets pull back to the waiting game.
FOMC Preview: No move; signal December
Barclays | We expect the Fed to remain on hold at its September meeting, deferring rate hikes while it assesses renewed risks to the outlook.
“We need to abandon this moralistic view on debt”
South Korean economist Ha-Joon Chang argues that although orthodox thinking is to cut debt, the most effective way for countries to grow is to boost their income. As for the recovery, this expert in emerging markets notes that the world economy is not really picking up in the way that it usually does after a big downturn. This is the first part of our conversation.
It Is Time to Redraw the World’s Economic Map
By Peter Lundgreen via Caixin | The turmoil on world financial markets has more to do with global changes that need to be noted than recent volatility in China’s stock exchange.
The Fed should act now
The Fed’s wavering over addressing the matter of its announced rate hike has badly affected the markets, increasing their volatility. It should act now, curbing any further speculation, and disregard recent calls from the IMF and the World Bank to further delay this move.
Fed keeps the markets in suspense
Next week’s Federal Reserve meeting ( September 16th and 17th) has investors on tenterhooks. Some Fed members have recently pointed to a possible rate hike in September, raising concerns not only in the markets but also amongst IMF and World Bank leaders.
Doubts over rate hike timing remain after Jackson Hole
Jackson Hole does not clear up the doubts over whether or not there will be a rate hike in September.