The US may have to do more easing as well, whether its called QE or not. Why do we need QE if the money markets are efficient? World as a whole needs more easing so why not adopt co-ordinated easing? Mixed data across the globe suggest the long ...

Dollar Bulls Retake the Whip Hand

She needs to talk about a wider canvas of global structural and cyclical economic developments. Then we might get a clearer picture of their plans in an appropriate context. Copy Cat Carney probably has a stronger case but again does not fit the UK ...

Fed still seen in lift-off mode as Yellen takes center stage

Great story with a well targeted side swipe at the FED. Our point is that nobody really is sure what the growth rate in global potential output is and hence the global output gap is a matter of judgement. But it seems incredible that we are close to ...

ECB Draghi: Structural Reforms, Inflation and Monetary Policy

Again this is not just a US story. It is not a closed economy. And outside it a great deal has been changing. The absence of inflationary pressure with global short interest rates very low for several years suggests unusual relationships. And ...

A New, Lower Normal for Fed Rates? Fed Officials’ Lively Debate

Here here. Goldilocks Goes Global. More money, more growth, no inflation.

Global Inflation Mystery Risks Making Central Bankers Bystanders

Its not just a US story. Globally unit labor costs are benign to weak, suggesting hikes in rates are way premature. Europe has negative short rates (22% plus of global economy); China has surplus labor with GDP decelerating (20% of world depending ...

No one is sure what's going on in the US economy, and the picture is about to get fuzzier

Interesting. Does this not square with Goldilocks that the US economy could grow much faster than people think now, without pushing inflation higher? I think that's so and so FED will need to ease more and go into negative interest rate territory - ...

Un-Goldilocks! Fed's Labor Market Conditions Index Tumbles Most Since 2012

QE is dead. Long live QE.

Annual inflation at 0.0% in the euro area

Equity markets look beyond 1 or 2 years - so they say - maybe there's a big beautiful future out there with high global growth and low inflation. If you remember US Goldilocks, she may be going global. Looks like we might be getting a recession ...

Bubble Blowing to Continue So Long as Yellen Isn’t Raising Rates

There are 3 central banks in the world with a combined responsibility of over 60% of global monetary conditions - USA, China and Europe. Of these Europe is the most responsible because global unemployment is still very high and global gowth is ...

The ECB Just Shot Back at Germans Who Say Low Rates Are Robbing Savers

OOps.

NZ dollar declines amid US dollar strength, outlook for lower NZ interest rates

Japan momentum building; US momentum tepid to weak. Range trade with bias to JPY. Nice balance of remarks including oil price fall which is big plus for Japan. Came at a good time. Japan structural reforms remain an issue, but so do US. Not that ...

BOJ Kuroda: Two Years under QQE

Cutes, yes - cuts no. LVR is like using a pot lid to deal with a dinner which is boiling over. The pressure will go somewhere. And as I said elsewhere, dairy is the Key. If dairy stabilises with positive hope then we are off! Kiwis are very interest ...

Wheeler: Press Conference on Financial Stability Report

Kiwis don't have any incentives to save but have a heap of incentives to buy houses. Ergo, housing is a boom and bust cycle, with the Kiwi trailing along behind. This boom has lots of oomph yet and so expect the Kiwi to do very well. On TWI basis ...

RBNZ's Wheeler: NZ dollar level unsustainable, unjustified

The world is a chaotic nonlinear system but we still get up in the morning. And why are you logged here? Long term is relative.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

We see AUD/USD at 90 by year end 2015. Global economy still warming up gradually, will pick up momentum by year-end even Japan kicking in. USA has big political and therefore economic poblems ahead, these will surface more often. AUD budget is 12 ...

Statement by Glenn Stevens, Governor: Monetary Policy Decision

I could agree if US had a government process which works and if inflation was actually a problem in USA. Two very big 'ifs' this year. The market is short dollars for very good reasons other than lack of inflation. As emphasised prior ...

Sell EUR/USD At Current Levels: Here Is Why? - Barclays

The longer this goes on the more power to the Greeks. If there is no unity among Euro area leaders the Greeks will win. And this is the problem with the Euro generally. Tantalising potential but grievously flawed.

If Greece falls, no one wants their prints on the murder weapon

The other error is continually predicting a crisis then one day in the next 20 years you might be right - or not. I'm going up to China next week for the 8th time in 4 years. There are many adjustments going on but none suggesting crisis, such as on ...

If China Sees Capital Outflows Now, What Happens in Crisis?

Not what you owe but what you own. Beijing has more eyes, ears and levers than Washington. This could well have been a story about USA which showed the world how to destroy your own money markets and create a global financial crisis (now 7-8 years ...

China Has a Massive Debt Problem