Banks Pushing Back Against Negative Interest Rates With Threat to Store Cash
Banks are looking into holding more cash as central banks threaten to drive interest rates even further into negative terrain.
Read more...Category Archives: Economic fundamentals
Top Marginal Tax Rates and Real Economic Growth, Part 1
This post looks at the relationship between the top marginal income tax bracket and growth in real GDP per capita (from NIPA table 7.1) in the subsequent year or years.
Read more...How the Fed Promoted “Financial Dominance” and Shadow Banking by Promoting Repo
Yves here. This is a very important post, and sadly I’m not providing it with the introduction and commentary it warrants because I am scrambling to get organized to get out of town. By Daniela Gabor is associate professor in economics at the University of the West of England, Bristol. Originally published at the Institute […]
Read more...Hot Money and Financial Activity in Commodity Exporters
A new World Bank paper looks at the interaction between commodity prices and commodity exporters. It’s a story about hot money.
Read more...Central Banks Pushing on Strings Again
More proof that central banks have lost the plot.
Read more...Wolf Richter: Declining Productivity Bodes Ill for Growth and Jobs
Why worries about falling US productivity are well-founded.
Read more...Austria: A Case Study of How Offshoring Lowered Growth
Austria illustrates that over time, offshoring reduces the skill levels of domestic workers and even organizations.
Read more...Bill Gross Chides CalPERS for Its 7.5% Returns Assumption; Illinois Set to Lower Target
More and more experts are taking CalPERS and other public pension funds to task over their barmy return assumptions.
Read more...Michael Hudson: Clinton’s Red-Baiting Distracts from Failure to Address Inequality, War-Mongering as Trump Flails
Clinton’s attacks on Trump distract attention from her 1% serving economic policies and her war-mongering, but Trump isn’t responding effectively.
Read more...Economists Mystified that Negative Interest Rates Aren’t Leading Consumers to Run Out and Spend
It been remarkable to witness the casual way in which central banks have plunged into negative interest rate terrain, based on questionable models. Now that this experiment isn’t working out so well, the response comes troubling close to, “Well, they work in theory, so we just need to do more or wait longer to see […]
Read more...Big Oil Increasingly Funding Dividends With Borrowing
Borrowing to prop up dividends…what could go wrong?
Read more...How CEOs Get Paid for Luck
Lackluster growth is everywhere….except in CEOs’ pay packets. Wonder why?
Read more...Emergy (with an “m”) and Environmental Accounting for Maine’s Landfill
Policy implementing the Maine Solid Waste hierarchy should be justified using emergy as the unit of account, and not dollars.
Read more...The Economic Drivers of Political Disruption in Advanced Economies
The (bad) economic policy roots of political polarization.
Read more...Why the Crisis in Italy is Not Over
The structural roots of Italy’s economic problems.
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