Supreme Court rules for Wal-Mart in massive job di @shahradm-blog - Tumblr Blog

It has now been nearly half a year since the European Central Bank declared its intention to buy some €1.1 trillion worth of eurozone government bonds. Contrary to the claims of the policy’s supporters, there is little evidence so far that the policy is working.

Long term interest rates are affected by bond purchases, but also expectations about future monetary policy.

“Most glaring is QE supporters’ tendency to ascribe any decline in interest rates before the policy was announced to market participants’ expectations that QE would be coming. Yet they do not apply the same reasoning to the decline in inflation expectations that occurred during the same period. They have followed the same logic since the purchases began, ignoring recent increases in interest rates, while lauding the small rise in inflation expectations as proof of QE’s effectiveness.”

#qe #ecb #eurozone #bonds #draghi

The first few hours of the work day can have a significant effect on your level of productivity over the following eight—so it’s important you have a morning routine that sets you up for success. With the help of career and workplace experts Lynn Taylor, David Shindler, Michael Kerr, Anita Attridge, Alexandra Levit and Michael “Dr. Woody” Woodward, I compiled a list of 14 things all workers should do when they get to work each morning.

Excellent review of QE, tapering, and recent inflation and unemployment figures. Crisis still feels looming

#monetary policy #crisis #fed

As below-trend GDP growth and high unemployment continue to afflict most advanced economies, their central banks have served up an alphabet soup of unconventional monetary policy measures. But, with asset prices continuing to rise, many countries may have more helpings than they can stand.

"For now, policymakers in countries with frothy credit, equity, and housing markets have avoided raising policy rates, given slow economic growth. But it is still too early to tell whether the macro-pru policies on which they are relying will ensure financial stability. If not, policymakers will eventually face an ugly tradeoff: kill the recovery to avoid risky bubbles, or go for growth at the risk of fueling the next financial crisis. For now, with asset prices continuing to rise, many economies may have had as much soup as they can stand."

#monetary policy #crisis #capitalism #fucked

Broadly speaking, economists have long split into two camps over the purposes a central bank should serve. One camp believes that a central bank should serve bankers, while the other camp believes that its primary responsibility is to maintain the robust functioning of the economy as a whole.

Banker's CB vs. Macroeconomic CB

Really basically finance vs. the rest of the economy. Argues more inflation (2-4%) is what is needed.

#monetary policy #%#power

From investors to insurers, pensions and home ownership, the upward shift in interest rates will affect the entire economy

#monetary policy #power #%

Krugman on why we have so many bubbles in nlism: financial deregulation, not easy money.

#neoliberalism #monetary policy #banks #regulation #crisis

Part of the reason why CBs and unconventional mon policy are failing.

#monetary policy #central banks #fed

http://www.project-syndicate.org/commentary/the-inflationary-risk-of-us-commercial-bank-reserves-by-martin-feldstein#9HkjRXDPwQY77Po9.99

"The link between Fed bond purchases and the subsequent growth of the money stock changed after 2008, because the Fed began to pay interest on excess reserves. The interest rate on these totally safe and liquid deposits induced the banks to maintain excess reserves at the Fed instead of lending and creating deposits to absorb the increased reserves, as they would have done before 2008."

As a result, the volume of excess reserves held at the Fed increased dramatically from less than $2 billion in 2008 to $1.8 trillion now. But the new Fed policy of paying interest on excess reserves meant that this increased availability of excess reserves did not lead after 2008 to much faster deposit growth and a much larger stock of money."

#QE3 #monetary policy

Widening income inequality and the weak recovery have undermined Americans’ belief in opportunity, President Obama said in an interview.

obama wanting to make investment, loose and growth based mon policy keys to future

#monetary policy #fiscal policy #usa #neoliberalism #austerity

As a reformed Europe starts growing, parts of it might experience US-style inequality. But Europe would be far worse off if it were to avoid serious reform and lapse, Japan-like, into egalitarian and genteel decline.

argues inequality not impeding growth. The reason for inequality is that the liberal global economy just favoured those in a position to take advantage of it (which to me means the rich). In US, need better vocational, etc. training, funded by an across the board tax reform (pointing to structural issues). all about productivity.

#structuraladjustment #growth #inequality #crisis

Talks about the 2012-2013 protests in Brazil, South Africa, Russia, and Turkey. It claims the main reason is a want for greater political liberty. Doesn't mention inequality once. Would be interesting to see how unequal these countries are.

#inequality #protest #neoliberalism #research

DURING the boom years, Americans borrowed and binged. The hangover has been long and throbbing, but after five years of water and aspirin, household finances are...

debt loads back to where they were at the beginning of the neoliberal period

#neoliberalism #debt

China's views on monetary policy seem very different from the strategy pursued in the US

"Instead, the central bank has remained on the sidelines of the market over the past five working days, refusing to provide the short-term cash injections that banks had expected. On Thursday, the PBoC said it would not conduct repo business at a scheduled auction, disappointing market players who thought it might relieve pressure on them by making a cash injection.

“The only explanation is that the central bank wants to send a warning signal to commercial banks and other credit issuers that unchecked credit expansion, particularly through the shadow banking system, will not be accommodated,” said Na Liu at CNC Asset Management."

#monetary policy #china #crisis

The Canadian economy no longer creates enough jobs for a highly educated work force â and no longer pays a big premium for those years of schooling

Articles like this make me think: Is it possible that pretty soon there's going to be reverse wave of immigration from the West (North) to the East (South)? Will relatively highly skilled (educated) people in places like Canada move to middle income/ emerging economies because the demand for educated people there will drive wages higher than they could get at home?

But then I remember that the living standards of middle classes in these places usually pales in comparison to the same living standards here. That said, maybe that'll change as these economies grow relative to ours. If things like language barriers, immigration laws, transportation costs, etc. didn't factor in, I'd probably say the tendency is going to be for an equalization of skilled wages across countries. But then I'd also have to forget about power relations. And faulty assumptions about what motives people to do what they do. And everything else that's debunked classical economics.

#polecon #sm #trends #theorizing

http://dealbook.nytimes.com/2013/05/17/the-problem-with-the-feds-easy-money-policies/

"But how long do we have to wait? How much more wealthy do the One Percent get to become through speculation — how much house flipping do private equity firms get to do — before we see some sustained improvement in the rest of the economy?"

"One solution is that the Fed needs to have a heavy regulatory hand to limit speculative activities. Perhaps regulators should raise margin requirements for stocks. Put the ratings agencies on notice that they are watching out for any loosening of criteria. Make these efforts public and keep talking about them.

And then, maybe quantitative easing needs to be refocused away from long-term Treasuries and housing. Maybe the Fed could figure out a way to buy student debt or municipal bonds to support infrastructure.

If quantitative easing is necessary, it should support investment, not speculation."

#monetary policy #1%#inequality #power

Argues that a bit of inflation would be a blessing, cause less damage than continued anemic grotwh (similar to Aquanno).

Where is fiscal policy here? Where is structure of labour market here (and US citizens' capacity to earn)?

#inflation #centralbank #monetary policy #critical #change

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Supreme Court rules for Wal-Mart in massive job di