Tagi

fiscal-policy

Deflation? Are we far from it?

Edward Harrison / 26-07-2010
Wow! We see the word “Deflation” everywhere; we see it in every financial publication and hear it every time we turn on financial TV. We see that the pundits who were bearish because of runaway inflation have just recently included deflation as well as inflation to be the problem. We were talking and warning about [...]

Welcomed Results of Fiscal Austerity

Prof. Stefan Karlsson / 07-06-2010
With much of Europe (not just Greece, Spain and Portugal, but also for example Britain, France and Italy) engaging in fiscal austerity programms, one question that arises is what effect this will have on price inflation. Traditionally the view is that it depends on whether or not the central bank also tightens monetary policy. If a [...]

Waking up to reality

Michael Panzner / 06-05-2010
Market old-timers (like me) have often said that the four most expensive words in the English language — or, on Wall Street, at least — are “this time is different.” Nevertheless, the phrase usually refers to developments that the masses (or the trading crowd) view as bullish but which are, in fact, precursors to an [...]

The Foreign Diversification Myth?

Michael Panzner / 04-03-2010
It’s become something of a mantra among U.S. investors: diversify overseas to boost returns and protect assets. In recent years, investing in foreign markets has been widely seen as a way to counter the risks associated with investing at home. These risks include the fallout from America’s ongoing fiscal woes, the restructuring [...]

IMF: Threat to world economy: financial conditions tightened too soon by central banks

Prof. Norman Bailey / 16-01-2010
The Managing Director of The International Monetary Fund (IMF) at a luncheon meeting today made the following remarks: The greatest danger to the world economy in the near future is that governments and central banks may tighten financial conditions too soon. The cleansing of the financial system must be be completed or another financial crisis is very [...]

Cause for Alarm

Michael Panzner / 20-12-2009
The Keynesian Kool-Aid drinkers keep insisting that big deficits and rapidly growing piles of public debt don’t really matter as long as there is “slack” in the economy. But they live in a fantasy world where ill-conceived policies are not subject to vetting by market and other forces. As the Greeks (among others) are now [...]


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