Category Archives: Euro zone Crisis

The outlook for the global economy and markets is multi-polar, depending on how the eurocrisis develops. Without the crisis, economic momentum and risk assets would probably now be recovering in response to faster G7 real money expansion since the spring. … Read More

Yesterday we received new data from the official measures of consumer inflation in the UK. The current targeted measure which is consumer price inflation rose to 4.5% on an annualised basis which is 2.5% over its target of 2% or if … Read More

The Swiss National Bank’s recent liquidity injection has pushed global bank reserves – the amount of cash held by banks in their accounts with central banks – to a new record. The first chart below is the regular presentation of … Read More

On the 7th of September twenty economists wrote an opinion piece in the comment section of the Financial Times to suggest the following. We call on the government to drop the 50p tax at the earliest opportunity as part of a … Read More

This morning has opened with equity markets around the world falling heavily on fears of more economic contagion from the peripheral nations in the Euro zone with default fears beginning to circle Greece more and more. One rather chilling number is … Read More

Today is central bank day in Europe where at midday we will hear from the Bank of England and then some time after 1:30pm we will hear from the European Central Bank (both UK time). Both central banks are facing … Read More

One of the responses of central banks to the credit crunch was to lower short-term interest -rates in many cases substantially. Many did this with such enthusiasm that a new acronym was coined called ZIRP which stands for Zero Interest … Read More

Over the past few days the situation concerning Italy and its relationship with the rest of the Euro zone has deteriorated markedly. I discussed back on the 30th of August the way that Mr. Berlusconi’s government appeared to be backsliding … Read More

The credit crunch era has had various features but one recurrent one has been the strength of the so-called safe haven currencies of which the “currency twins” the Swiss Franc and the Japanese Yen have been at the forefront. Only … Read More

Real M1 deposits continue to contract in the Eurozone periphery, as noted in a post last week. There are some interesting country differences, however. Italian real M1 deposits, having declined sharply in late 2010 and early 2011, returned to six-month … Read More