Bonds and Stocks
Note on U.S. Inflation
April 20, 2009
One of the conceptual tools that economists use to analyze inflation is the output gap, which compares the long-run trend of economic growth, also known as potential GDP growth, to the actual trend in output. When potential lies below actual, inflation tends to accelerate, but when actual as now is below potential, the opposite occurs. […] More
Central Bank Watch
Bank of Canada Preview
April 20, 2009
Canada’s target interest rate is already very low — just 0.5% on overnight borrowings — and will at most be lowered 25 basis points on Tuesday. The meat of tomorrow’s central bank statement involves the likelihood and extent of credit and quantitative easing that will be unveiled. In the prior statement on March 3, “a […] More
Central Bank Watch
Hungary's Monetary Policy Left Unchanged
April 20, 2009
The Magyar Nemzeti Bank retained a 9.5% benchmark rate as expected. Typical of other European economies, GDP growth has tumbled (-3.9% at a seasonally adjusted annual rate in 4Q08), and inflation has declined appreciably from 6.7% in in the year to March 2008 to an in-target 2.9% in the year to March 2009. However, the […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Markets Open Week in Risk Averse Mood
April 20, 2009
European stocks are sharply lower: German Dax -2.5%, Paris Cac -2.4%, and British Ftse -1.2%. Asian stocks earlier closed mixed, with losses of 4.6% in Vietnam, 1.1% in Singapore and 0.8% in India but gains of 2.2% in China, 2.1% in Thailand and 1.0% in Hong Kong. Japan’s Nikkei edged up 0.2%. Australia down 0.2%. […] More
