Archive for March 14th, 2012

Central Bank Watch

Sri Lanka: No Further Monetary Tightening at This Time.

March 14, 2012

The Sri Lankan economy has issues that often require monetary policy tightening: an excessive trade deficit, private domestic credit growth of more than 30% on year, diminished international reserves, and a vulnerability.  A number of measures were taken earlier this year to address the problems including an 18% cap on credit growth and, on February […] More

Deeper Analysis

How the U.S. Current Account Was Financed in the Fourth Quarter and 2011

March 14, 2012

The current account deficit widened 15.3% last quarter and to 3.2% of GDP from 2.8% in the third quarter.  The increase in 2011 was only 0.5%, and there was a marginal dip last year when expressed as a percentage of GDP.  The table shows the financing of that current account between official and private capital […] More

New Overnight Developments Abroad - Daily Update

The Morning After

March 14, 2012

Yesterday was a good day for investors, who sighed continuing relief because 1) a disorderly Greek default had been averted and prompted Fitch to upgrade that country’s credit rating to B-, 2) a Fed statement that upgraded growth prospects but did not tighten its policy stance, 3) U.S. stress test results where 15 of 19 […] More