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Tag Archives: inflation

Greece’s baby steps and Blanchard’s grand new solution

From Bloomberg: Fitch’s Rawkins says EU failed to ease Greek debt crisis … Mr. Rawkins says about Greece’s fiscal actions … “The problem with all those measures is that they take time…” Yes… when governments make fiscal adjustments it generally takes numerous quarters or years for the effects to have an impact on the economy… (of course […]

When central banks crack down, “financial instability” will ensue

Amazingly asset prices around the world have surged and some central banks are raising rates to “manage” potential asset bubbles… Bloomberg reports that the Bank of Isreal and Norges Bank may raise rates this week… this follows the actions of the Reserve Bank of Australia raising rates in September… Several points: 1. Global economic growth has […]

Inflation and public finance

If governments issue debt that pays a fixed nominal interest level, then it can reduce it’s debt obligations by creating inflation. This is a form of default. Tim Besley, Bank of England and LSE, Making Monetary Policy Work Royal Economic Society lecture (slide 34) November 18, 2008

diversify, stay short and lean toward quality

Bond Investing in a Weak Economy – Analysis and Discussion with Jay Mueller of Wells Fargo (Bloomberg News – running time ~ 5 minutes) Mr. Mueller talks about the potential for inflation and he says about buying muni bonds… “use high diversification, stay short, and lean toward quality…”

Feldstein on recession, inflation and ‘stress tests’

Harvard economist Martine Feldstein discusses the recession and the outlook for inflation and economic recovery… (Bloomberg… running time  ~ 6:40 minutes) He says “we are still in the middle of a recession”… “unemployment rate will continue to rise”… “turnaround somewhere in 2010… more of a hope than a forecast… “the banks have enormous reserves on […]

To TIP or not to TIP

Charles Diebel, at Nomura International in London, talks about TIPS and inflation, Treasury yields going forward, quantitative easing and the G20 meeting… (running time = 3 minutes)