Archive for September 20th, 2011

Deeper Analysis

Many Things Are Depressing U.S. Job Creation, and Some Are Paradoxical

September 20, 2011

One reason for investor euphoria in the latter 1990s about long-term U.S. economic prospects was a pick-up in productivity growth, that is output per man-hour worked.  Productivity tends to be a predictor of future changes in the standard of living, and so equity markets enjoyed an impressive rally in the years before 2000 when America’s […] More

Central Bank Watch

Wait and See Attitude at Hungary’s Central Bank

September 20, 2011

As analysts anticipated, policymakers at the Magyar Nemzeti Bank left their two-week deposit rate at 6.0%.  Conflicting forces stalemated their thinking.  The growth outlook has worsened substantially, prompting officials to halve their 2012 GDP growth forecast to 1.5% and to become more confident about lower inflation in the future.  On the other hand, the Hungarian […] More

Central Bank Watch

Turkish Monetary Policy Left Unchanged with a Bias Toward Ease

September 20, 2011

The Central Bank of the Republic of Turkey retained a 5.75% one-week repo rate and kept overnight lending and borrowing rates at 9% and 5%, respectively.  During the Great Recession, Turkey’s key rate was cut from 18.75% to 7.0% over the year between November 2008 and November 2009. Monetary policy subsequently had tightened in late […] More

New Overnight Developments Abroad - Daily Update

Italian Sovereign Debt Rating Downgraded by S&P

September 20, 2011

European equities rebounded after Monday’s drop despite more unsettling news from the region. S&P downgraded Italian long-term sovereign debt to a rating of A from A+.  A reassessment by Moody’s is thought also to be likely. Press reports surfaced that the German industrial company Siemens withdrew half a trillion euros recently from one of the […] More

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