Larry's Blog
Dollar Crisis: Fact or Fancy
October 14, 2009
An Op-Ed column by economist Judy Shelton in today’s Wall Street Journal entitled “The Message of Dollar Disdain” contains more dire warnings about the U.S. currency. Invoking the Weimar Republic, she blames eroded confidence in the dollar “excessive government borrowing” and the collateral “threat to monetary stability” given the potential risk of the Fed accommodating […] More
Currency Markets in the News
Euro Area Industrial Production
October 14, 2009
Industrial output rebounded at a 9.8% annualized rate in Euroland during the middle third of 2009, that is over the four months between April and August, yet production was still 15.4% lower in August than a year earlier in August 2008. That’s because production plunged at annualized rates of 32.1% in the final third of […] More
Central Bank Watch
Bank of Japan: No Changes Yet
October 14, 2009
After meeting for seven hours and nine minutes over two days, the Policy Board of the Bank of Japan voted unanimously again to retain a 0.1% target for the uncollateralized overnight call money rate. This rate target first fell to as low as 0.5% in September 1995 and has never exceeded that level in the […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: More Optimism in International Markets
October 14, 2009
Stocks and bond yields are higher, and the dollar is broadly lower. Gold touched $1070.80, a new record high. Euro area industrial production advanced 0.9% in August following gains of 0.2% in July, 0.9% in June and 0.1% in May. On-year drop moderated to 15.4%. Bank of Japan Governor Shirakawa hints bank may end special […] More
Central Bank Watch
Central Bank of Chile Makes No Change in Policy
October 14, 2009
Chile’s policy interest rate as expected was kept steady at 0.5% for the third straight monthly policy meeting. From a peak of 8.25% at the start of 2009, the rate had previously been slashed by 600 basis points during the first quarter, 150 basis points in the second quarter, and 25 basis points in July. […] More
