International
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“The Great Chinese Inflation”
“Inflations have undermined the cultural and economic fabric of society, bringing social chaos and revolution. One example is the Great Chinese Inflation of the 1930s and 1940s. Indeed, the destruction of the Chinese monetary system during this period helped Mao Zedong’s communist movement triumph on the Chinese mainland in 1949. In the nineteenth and early…
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“Greece and GM: Too weak to fail”
“In the commercial, Whitacre says GM has ‘repaid our government loan in full.’ Rep. Paul Ryan (R-Wis.) noted that GM used government funds to pay back the government: It ‘simply transferred $6.7 billion from one taxpayer-funded TARP account to another.’ The government still owns 60.8 percent of GM’s common equity, and the Congressional Budget Office…
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Roche – Not the way to solve the debt crisis
“the world is facing a major sovereign debt crisis that will squeeze economic growth and possibly deliver a series of debt default events down the road. Sovereign debt issuance is now sucking up 25 per cent of available world savings and that will squeeze the ability of the private sector to invest in productive opportunities.”…
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“Warning: Inflation May Be Harmful to Your Growth”
“While few doubt that very high inflation is bad for growth, there is less agreement about the effects of moderate inflation. Using panel regressions and allowing for a nonlinear specification, this paper finds a statistically and economically significant negative relationship between inflation and growth, which holds robustly at all but the lowest inflation rates. A…
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Carmen Reinhart on Debt Crises
University of Maryland economist Carmen Reinhart recently published a book with co-researcher Kennet Rogoff presenting several hundred years of data on financial crises. The title This Time Is Different alludes to the mentality that often develops during unsustainable booms–namely the belief that the old rules of valution does not apply anymore because of some technological…
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“Euro Crisis Tests Germany’s Ability to Lead”
“At a defining moment for the European Union, its largest country, Germany, appeared divided and its leader absent, raising significant concerns about what kind of leadership Chancellor Angela Merkel can offer as the region tries to stabilize financial markets and shore up its common currency.” Read more. “Euro Crisis Tests Germany’s Ability to Lead” Nicholas…
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The Euro-Crisis: Fear Is Back in Play
“Now, fear is back in play,” said William H. Gross, managing director of Pimco, as the European crisis is sending shock waves into financial markets around the world. There is fear that the sovereign debt crisis could freeze up the euro-zone interbank market, in a replay of the credit crunch of 2007-2008. Several major European…
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Europe’s Political and Economic Crisis
Some interesting news items this week on the European crisis: A “wild week” (Financial Times) “Fears of eurozone sovereign risk contagion to banks, tighter monetary policy in China and surprise intraday selling by electronic trading systems united to deliver the worst week for global equities since the height of the financial crisis.” “For investors, the…
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Another Financial Crisis in the Making
World-wide stock markets plunged yesterday as the ongoing sovereign debt crisis in Europe is worsening. The Dow fell 1000 points–its worst ever intraday drop–before rebounding, but still ended down more than 3 percent (as did the S&P 500 and Nasdaq). Other factors played into this incident as well–a mistaken sell order from Citigroup, unfortunate consequences…
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“The euro: love it or leave it?”
“The world economy is continually changing, but one constant is dissatisfaction with the euro. Toward the beginning of the decade, the main complaint was that the euro was too weak for booming economies like Ireland. Now the complaint is that it is too strong for growth-challenged countries like Italy. To be sure, the source of…
-
“The Great Chinese Inflation”
“Inflations have undermined the cultural and economic fabric of society, bringing social chaos and revolution. One example is the Great Chinese Inflation of the 1930s and 1940s. Indeed, the destruction of the Chinese monetary system during this period helped Mao Zedong’s communist movement triumph on the Chinese mainland in 1949. In the nineteenth and early…
-
“Greece and GM: Too weak to fail”
“In the commercial, Whitacre says GM has ‘repaid our government loan in full.’ Rep. Paul Ryan (R-Wis.) noted that GM used government funds to pay back the government: It ‘simply transferred $6.7 billion from one taxpayer-funded TARP account to another.’ The government still owns 60.8 percent of GM’s common equity, and the Congressional Budget Office…
-
Roche – Not the way to solve the debt crisis
“the world is facing a major sovereign debt crisis that will squeeze economic growth and possibly deliver a series of debt default events down the road. Sovereign debt issuance is now sucking up 25 per cent of available world savings and that will squeeze the ability of the private sector to invest in productive opportunities.”…
-
“Warning: Inflation May Be Harmful to Your Growth”
“While few doubt that very high inflation is bad for growth, there is less agreement about the effects of moderate inflation. Using panel regressions and allowing for a nonlinear specification, this paper finds a statistically and economically significant negative relationship between inflation and growth, which holds robustly at all but the lowest inflation rates. A…
-
Carmen Reinhart on Debt Crises
University of Maryland economist Carmen Reinhart recently published a book with co-researcher Kennet Rogoff presenting several hundred years of data on financial crises. The title This Time Is Different alludes to the mentality that often develops during unsustainable booms–namely the belief that the old rules of valution does not apply anymore because of some technological…
-
“Euro Crisis Tests Germany’s Ability to Lead”
“At a defining moment for the European Union, its largest country, Germany, appeared divided and its leader absent, raising significant concerns about what kind of leadership Chancellor Angela Merkel can offer as the region tries to stabilize financial markets and shore up its common currency.” Read more. “Euro Crisis Tests Germany’s Ability to Lead” Nicholas…
-
The Euro-Crisis: Fear Is Back in Play
“Now, fear is back in play,” said William H. Gross, managing director of Pimco, as the European crisis is sending shock waves into financial markets around the world. There is fear that the sovereign debt crisis could freeze up the euro-zone interbank market, in a replay of the credit crunch of 2007-2008. Several major European…
-
Europe’s Political and Economic Crisis
Some interesting news items this week on the European crisis: A “wild week” (Financial Times) “Fears of eurozone sovereign risk contagion to banks, tighter monetary policy in China and surprise intraday selling by electronic trading systems united to deliver the worst week for global equities since the height of the financial crisis.” “For investors, the…
-
Another Financial Crisis in the Making
World-wide stock markets plunged yesterday as the ongoing sovereign debt crisis in Europe is worsening. The Dow fell 1000 points–its worst ever intraday drop–before rebounding, but still ended down more than 3 percent (as did the S&P 500 and Nasdaq). Other factors played into this incident as well–a mistaken sell order from Citigroup, unfortunate consequences…
-
“The euro: love it or leave it?”
“The world economy is continually changing, but one constant is dissatisfaction with the euro. Toward the beginning of the decade, the main complaint was that the euro was too weak for booming economies like Ireland. Now the complaint is that it is too strong for growth-challenged countries like Italy. To be sure, the source of…
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