Disinflation-felt locally, spread globally
UBS | Monetary policy remains stimulative globally, and labor markets are tightening. Yet, global inflation is low.
monetary policy
“Deflation Remains More of a Threat to Growth Than Low Interest Rates”
Are we putting the responsilibity of exiting the crisis on central banks’ shoulders? Is ECB’s president Mario Draghi doing traders a favour by playing down the ECB’s responsibility for contributing to volatility? Professor of Financial Mathematics at Bocconi’s University Marcello Minenna answers to these questions from Milan and argues that a low interest rate environment is here to stay.
The ECB eases further: yet another example of “infinitely short and not variable”
By James Alexander via Historinhas | Another day another proof of the immediate impact of active monetary policy in altering NGDP growth expectations and therefore setting the flight path to a different future.
Why is China finding it hard to fight the markets?
By Alicia García-Herrero at Bruegel | Sitting on a pile of debt, China’s only way out is to deleverage: more pain now for sustainable growth later. [Figure: China’s augmented fiscal deficit as % of GDP.]
“Yuan Devaluation Is Part and Parcel of Reform”
By Wang Liwei at Caixin | Aders Borg from the World Economic Forum discusses structural changes and the global financial framework’s future.
SNB on the defensive at Jackson Hole
By James Alexander via Historinhas | Although it appeared that the VSPs gathered in Jackson Hole could only worry about non-existent inflation, I detected a defensiveness too.
Key risks for Europe: Greece, China and Fed
New risks and setbacks again threaten Europe’s economic sentiment.
What does Fed exit mean for equities?
UBS analysts explain some key aspects of Fed’s challenging task starting in September.
ECB Price Stability Strategy Bearing Fruit
Some experts analyse the impact of the first almost 6 months since the ECB announced the launch of its ‘quantitative easing’.
Retreat in all markets
China’s unexpected decision to devaluate its currency triggers uncertainty in the markets.