Archive for November 15th, 2011

Central Bank Watch

Chilean Benchmark Central Bank Rate Kept at 5.25%

November 15, 2011

The Central Bank of Chile is better positioned than most central banks to handle a new downturn in global activity should the euro debt crisis evolve into such.  That is because Chile’s central bank raised the key interest rate by 475 basis points from 0.5% prior to June 2010 to 5.25% one year later.  Increases […] More

Deeper Analysis

Post-Great Recession Recovery Too Short and Too Shallow in the Euro Area

November 15, 2011

The Great Recession was associated with a 2008 calendar year uptick of Euroland GDP of just 0.4% followed by a contraction of 4.2% in 2009.  In the ensuing recovery, real GDP expanded by 3.8% over the nine quarters between mid-2009 and 3Q11 including gains of just 0.2% each in the two most recent periods.  A […] More

New Overnight Developments Abroad - Daily Update

Investors Fed Up with the Toxic Rhetoric of European Officials

November 15, 2011

Risk aversion has spiked.  The German Dax, Paris Cac and British Ftse have so far dropped today by 2.4%, 2.1%, and 1.4%.  Ten-year Italian bond yields of are again more than 700 basis points above German bunds.  German bunds and British gilts have fallen by three and four basis points.  The dollar is stronger, and […] More