Category Economics

Bonds – How Inflation And Interest Rates Affect Bonds – Investopedia

Bonds – How Inflation And Interest Rates Affect Bonds Ownership of a bond is the ownership of a stream of future cash payments. Those cash payments are usually made in the form of periodic interest payments and the return ofprincipal when the bond matures. In the absence of credit risk (the risk of default), the value of that stream of […]

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6 Factors That Influence Exchange Rates

By Jason Van Bergen on July 23, 2010 Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants of a country’s relative level of economic health. Exchange rates play a vital role in a country’s level of trade, which is critical to most every free market economy in the world. For this reason, […]

How The U.S. Government Formulates Monetary Policy

By Reem Heakal on December 31, 2011 A monetary policy is the means by which a central bank (also known as the “bank’s bank” or the “bank of last resort”) influences the demand, supply and, hence, price of money and credit, in order to direct a nation’s economic objectives. Following the Federal Reserve Act of 1913, the Federal Reserve […]

The Economist // Age shall not weary her

America’s central bank has become ever more powerful over the past century AS THE holiday season of 1913 drew near, only one thing stood between Woodrow Wilson and a long-awaited vacation on the Gulf of Mexico. Congress was still fighting over a bill to create the Federal Reserve, and Wilson had threatened to keep it […]

The Fed’s Delay in Tightening of Monetary Policy Actually Means Loosening

The Fed’s Delay in Tightening of Monetary Policy Actually Means Loosening Investors have had plenty of market-moving Federal Reserve news to digest this week: Janet Yellen apparently is a shoo-in as the next Fed chief after Larry Summers dropped out of the running, while Ben Bernanke kept monetary policy on hold for now by not […]

Risk on/risk off correlations are fading fast

  Risk on/risk off correlations are fading fast By Stephen Foley in New York If risk on/risk off is off, what’s on? It had all been so simple. Good news on US jobs? Buy equities, commodities, emerging markets, and sell bonds. New eurozone wobble? Sell equities, commodities, emerging markets, buy bonds. More ON THIS STORY […]

The Yield Curve and Predicted GDP Growth, October 2013

The Yield Curve and Predicted GDP Growth, October 2013 November 5, 2013 Covering October 5, 2013–October 18, 2013 Highlights October September August 3-month Treasury bill rate (percent) 0.08 0.02 0.05 10-year Treasury bond rate (percent) 2.66 2.64 2.73 Yield curve slope (basis points) 258 262 268 Prediction for GDP growth (percent) 1.1 0.9 Probability of […]

Barron’s : How to Play Stocks and Bonds as Rates Rise

Cutwater Asset’s Cliff Corso expects another good year for equities. Why he likes fixed-income plays in munis and some high-yield bonds. Investors have been worrying about interest rates, which have been their good friend in recent years. But rates are poised to move higher; it’s just a question of when. And that raises tough questions, […]

The Whole Debate About The Stock Market

“Normally in th emiddle of an economic cycle, investment spending is 2 to 3 times GDP growth. Strong investment spending is what drives S&P 500 sales and non-financial profits. The whole debate about the S&P is about when this turns back up again.”   — David Bianco, Chief US Equity Strategist at Deutsche Bank  

The Fed’s Surprise and Yellen’s Challenge

  Mohamed A. El-Erian Mohamed A. El-Erian is CEO and co-Chief Investment Officer of the global investment company PIMCO, with approximately $2 trillion in assets under management. He previously worked at the Internation… The Fed’s Surprise and Yellen’s Challenge NEWPORT BEACH – The US Federal Reserve sparked a global – and now month-long – guessing […]

HOW THE ECONOMIC MACHINE WORKS

World Economic Outlook (WEO)

Hopes, Realities, and Risks Global economic prospects have improved again, but the bumpy recovery and skewed macroeconomic policy mix in advanced economies are complicating policymaking in emerging market economies. Chapter 3 examines the prospects for inflation, particularly because inflation was remarkably stable in the wake of the Great Recession and, in fact, has become less […]

Aid to poor countries slips further as governments tighten budgets

Aid to poor countries slips further as governments tighten budgets 03/04/2013 – Development aid fell by 4% in real terms in 2012, following a 2% fall in 2011.  The continuing financial crisis and euro zone turmoil has led several governments to tighten their budgets, which has had a direct impact on development aid.  There is also […]

France must do more to boost competitiveness and create jobs

France must do more to boost competitiveness and create jobs 19/03/2013 – France has avoided the most severe impacts of the global economic crisis and turmoil in the euro area, but must now take action to boost competitiveness and create jobs, according to the OECD’s latest Economic Survey of France. The Survey, presented in Paris […]

Revive Lincoln’s Monetary Policy: an Open Letter to President Obama

Revive Lincoln’s Monetary Policy: an Open Letter to President Obama by Ellen Brown posted Apr 07, 2009 President Obama at the We Are One Inaugural Celebration at Lincoln Memorial Dear President Obama: The world was transfixed on that remarkable day in January when, to poetry, song, and dance, you gazed upon Abraham Lincoln’s likeness at the […]

Money from Nothing: How Private Banks Create Money and Ideas for Reform of the Monetary System by James Robertson — YES! Magazine

Money from Nothing Supplying money should be a public service, not a cash cow for banks. by James Robertson posted Jul 07, 2009 The way money is created and issued, who creates it and in what form—as debt or debt-free, in one currency or another—largely determines whether a financial system works fairly and efficiently or […]

Money creation out of dept: Fractional Reserve Banking

 

Money Creation

Understanding how money is created provides a foundation for appreciating the implications of our massive levels of debt, because it tells us how that debt came into being. As John Kenneth Galbraith once said, “The process by which money is created is so simple, the mind is repelled.” Dr. Martenson walks us through this simple […]

How money is created today: The rules of the economy by Positivemoney.org.uk

    1. MORE MONEY in the economy –>> MORE DEPT Problem is : But a damaged banking system means that today banks aren’t creating enough money. W have to do it for them Sir Mervy King, GOvernor of the Bank of Enland.   2. LESS DEPT –>> LESS MONEY n the economy When people […]

18th century crises: Panic of 1796-97

From Wikipedia, the free encyclopedia The Panic of 1796–1797 was a series of downturns in Atlantic credit markets that led to broader commercial downturns in both Britain and the United States. In the U.S., problems first emerged when a land speculation bubble burst in 1796. The crisis deepened when the Bank of Englandsuspended specie payments on February 25, 1797 under the Bank […]

18th century crises: Credit crises of 1772 orginated in London

Credit crisis of 1772 source: wikipedia The Credit Crisis of 1772 originated in London and then spread to other parts of Europe, such as Scotland and Netherlands. Before crisis From the mid 1760s to the early 1770s, the credit boom, supported by merchants and bankers, facilitated the expansion of manufacturing, mining and internal improvements in both […]

18th Century Crises: South Sea Bubble

South Sea Bubble The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing, commonly called the South Sea Company,[1] was a British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt. The company […]

17th century: Tulip mania

Tulip mania was a period in the Dutch Golden Age during which contract prices for bulbs of the recently introduced tulip reached extraordinarily high levels and suddenly collapsed. At the peak of tulip mania, in February 1637, some single tulip bulbs sold for more than 10 times the annual income of a skilled craftsman. It […]

14th century: The Crash of Peruzzi and the Bardi family in 1345

The Crash of the European Financial System in 1345 Florentine banking family. By 1310 they were the wealthiest family in Florence. They and the other two leading family banks, the Peruzzi and the Acciaiuoli, maintained branches at locations stretching from England and the Netherlands to North Africa and the Middle East. The company’s basic operating capital belonged to the […]

Crises of the Third Century

source: wikipedia The Crisis of the Third Century (also “Military Anarchy” or “Imperial Crisis”) (AD 235–284) was a period in which theRoman Empire nearly collapsed under the combined pressures of invasion, civil war,plague, and economic depression. The Crisis began with theassassination of Emperor Alexander Severus at the hands of his own troops. By 258–260, the Empire split into three competing states: the Gallic Empire, including the Roman […]

Economic liberalism

Economic liberalism, also known as fiscal liberalism, is the ideological belief in organizing the economy on individualist lines, meaning that the greatest possible number of economic decisions are made by individuals and not by collective institutions or organizations.[1] It includes a spectrum of different economic policies, but it is always based on strong support for […]

Wikipedia contents: Economics/Financial markets/Banking/Corporate finance/Personal finance/Public finance

  Economics Economies by country General classifications Microeconomics Macroeconomics History of economic thought Methodology Heterodox approaches Technical methods Mathematical Econometrics Experimental National accounting Fields and subfields Behavioral Cultural Evolutionary Growth Development History International Economic systems Monetary and Financial economics Public and Welfare economics Health Education Welfare Population Labour Personnel Managerial Computational Business Information Game theory Industrial organization Law Agricultural […]

Tax burdens on labour income in OECD countries continue to rise

  26/03/2013 – New data show that across OECD countries the average tax and social security burden on employment incomes increased by 0.1 of a percentage point to 35.6 per cent in 2012.  It increased in 19 out of 34 countries, fell in 14,  and remained unchanged in  1.   The increases were largest in […]

Global economy is improving but Europe lags behind, says OECD

Global economy is improving but Europe lags behind, says OECD 28/03/2013 – Global economic activity is picking up, but the continuing crisis in the euro area is delaying a meaningful recovery, the OECD said in its latest Interim Economic Assessment. The Assessment, presented in Paris by Chief Economist Pier Carlo Padoan, says that the G7 […]