What’s Wrong with Inflation Targeting?
Macroeconomic policy focused on inflation targeting is likely to deliver neither macroeconomic stability nor economic development, aka sustainable growth.
Read more...Category Archives: Banking industry
Lagarde Distances the IMF From Implications of Leaked Debt Sustainability Report
By Nathan Tankus, a writer from New York City. Follow him on Twitter at @NathanTankus Earlier this week I did a detailed analysis of the way the media misreported Lew and Lagarde’s statements last week regarding Greece. Yesterday this type of misreporting reared its ugly head again when an update to the Debt Sustainability report […]
Read more...ECB Expected to Continue to Strangle Banks, Not Provide More ELA Funding Today, Despite Greek Parliament Passing Austerity Legislation (Updated: ECB Does Not Provide All of Requested Funding, Attaches New Strings)
The ECB is in full sack-of-Carthage mode if it fails to increase the ELA today to give Greek banks some hope of survival and more important for the economy, of providing payment services to citizens, businesses (particularly importers) and tourists
Read more...Greek Parliament Passes Bailout Legislation
The margin of victory, if you can call it that, was 229 out of 300.
Read more...Convert to the Drachma – Piece of Cake. Right…
Those who consider a Grexit, meaning reintroducing drachma, to be a sine qua non for Greece moving forward have no idea of what that entails.
Read more...IMF Throws a Spanner in Proposed Greece Deal, Says Debt Reduction May Not Be Enough
The IMF has dropped a big shoe before the Greek government has passed any of the legislation required as part of its pending bailout. But if this development leads to more wrangling, that means an even longer delay before Greek banks get any liquidity, which means continued strangulation of the Greek economy.
Read more...Tentative Deal Strips Greece of Sovereignty, Makes Debt Relief Dependent on Compliance
The tentative deal deal with Greece and its creditors is simply vicious.
Read more...“Greece Brought a Latte to a Gunfight”
How Greece, and in particular, Yanis Varoufakis, grossly misunderstood German interests and how that led Greece to destroy itself and further German rule.
Read more...Greece Should Beware of Merchant Services Providers Bearing DDCs
Solving the mystery of how a hotel guest’s bill in Greece came to be (briefly) denominated in drachmas.
Read more...Perry Mehrling: China’s Rocky Road Ahead, Financial Liberalization versus Financial Stability
Will China’s renminbi transition smoothly to reserve currency status, or not? And should it?
Read more...Bill Black: LIBOR – History’s Largest Financial Crime that the WSJ and NYT Would Like You to Forget
Reporting on the Libor criminal trial in the UK ranges from lame to non-existent.
Read more...Wolf Richter: Microsoft Tallies the True Costs of the M&A Boom: Layoffs, Write-Offs, Shut-Downs, and Economic Decline
Microsoft illustrates the real-world fallout of letting corporate executives, either out of desperation or out of finding deal making more fun than the grind of making businesses perform better, follow the siren song of M&A mavens.
Read more...Why Growth in Finance is a Drag on the Real Economy
New evidence shows that when the financial sector grows more quickly, productivity tends to grow disproportionately slower in industries with either lower asset tangibility or in industries with higher research and development intensity. It turns out that financial booms are not, in general, growth-enhancing.
Read more...GREECE’D: We Voted ‘No’ to Slavery, but ‘Yes’ to Our Chains
Greek journalist Michael Nevradakis and US investigative journalist Greg Palast have a different take on the Greek ‘No’ vote against Europe’s cruel austerity demands.
Read more...Will the ECB Continue Its “Sherman’s March to the Sea” with the Greek Economy?
If the ECB does not give Greek banks more funds under the ELA today, the Greek economy is going to start to suffer lasting damage.
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