Best Monthly Gains in a Year for Stocks: So What? (at Seeking Alpha)
Best Monthly Gains in a Year for Stocks: So What? (at Seeking Alpha)
Unbacked Emission of Currency Is a Death Spiral
Karl Denninger submits:
James Bullard says we blew it. That’s the only take-away I can get from this one (pdf file):
They studied abstract economies in which the monetary policymaker follows an active Taylor-type monetary policy rule, that is, the policymaker changes nominal interest rates more than one-for-one when inflation deviates from a given target. Active Taylor-type rules are so commonplace in present day monetary policy discussions that they have ceased to be controversial. Benhabib, et al., also emphasized the zero bound on nominal interest rates. They suggested that the combination of an active Taylor-type rule and a zero bound on nominal interest rates necessarily creates a new long-run outcome for the economy. This new long-run outcome can involve deflation and a very low level of nominal interest rates. Worse, there is presently an important economy that appears to be stuck in exactly this situation: Japan.
Is Cash Trash or King?
Likely Market Movers to Watch This Week: August 2 – 6, 2010
Cliff Wachtel submits:
Likely market movers to watch:
- Friday’s monthly US jobs reports and preceding events that provide clues on their results
- Euro-zone, UK, and China PMI reports
- Central bank rate statements and commentary from the Euro-zone and Australia
- Weak technical picture for the bellwether S&P 500 combined with more lackluster US data suggests a higher chance of downside moves this week, though within ranges of the prior 2 months
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