For the fourth straight trading session, U.S. stocks climbed on news that General Electric Co. (NYSE: GE) and Morgan Stanley (NYSE: MS) and other companies beat quarterly expectations.
Pressure continues to build on the ECB to act. As discussed earlier (see post), the central bank may remain on the sidelines for some time, but the latest developments (listed below) make this inaction increasingly difficult.1. Declining Liquidity: The…
There must be some café in Brussels where all the most inept U.S. financial journalists meet with to get their take on eurozone deflation.
Given the situation, most central bankers would take action. A simple policy change for example could be to suspend the sterilization of securities already held by Eurosystem – see post. But the ECB is hesitating. Why?
For the first time the ECB has admitted that disinflationary pressures present a problem for the central bank. Draghi is blaming the downward pressures on prices in the Eurozone on the unusually strong euro.WSJ: – “The strengthening of the effective eu…
So far the ECB has not responded to the disinflationary risks building in the euro area. Some Governing Council members dismissed the calls for action from numerous economists, referring to the analysts’ reports as the “Anglo-Saxon” irrational fea…
Today Credit Suisse confirmed our earlier assessment that the ECB will be shifting toward a looser monetary stance in the near future
It may be something symbolic such as a small rate cut or possibly a more substantial move such as a new LTRO program (discussed here), but the European Central Bank will be forced to loosen monetary policy in the near future. Here are the reasons…
The Eurozone’s “Nascent” Recovery
By William K. Black On January 19, 2014 I posted a column entitled “Deflation: The Failed Macroeconomic Paradigm Plumbs New Depths of Self-Parody” that discussed the insanity of the Eurozone’s approach to “the threat of deflation.” The EU’s troika cannot … Continue reading →
The Euro area inflation indicators are pushing into dangerous territory. The core CPI measure in particular is trending sharply lower. The ECB has so far been taking a “wait and see” attitude, though some on the Governing Council are apparently getting concerned.
