Economics

Fixed exchange rates limit the degrees of freedom for policymakers.  The breakdown of Bretton Woods in 1971 removed this constraint on official action, and the results were larger budget deficits and higher inflation.  The zero bound on interest rates also...

The market reaction to Draghi's indication, once again, that interest rate policy has run its course, will be debated for some time.  Draghi delivered the goods that many investors said was lacking last December.  The ECB policy was more than...

The euro is paring the recovery that began in the middle of the ECB's press conference yesterday. The market reaction was one intuitively expected to broad easing of interest rates and credit conditions.  The market reversed, and violently so, only...

Australia’s 2016 Defence White Paper says a lot about the South China Sea, both directly and indirectly. It expresses concern about land reclamation and construction activities by claimants in the sea and about the possible use of artificial structures for...

Draghi delivered.  He managed to get approval for everything.  Rate cuts, acceleration of purchases, including corporate bonds to the purchase program and new long-term repos were announced.   The knee-jerk reaction was favorable.  The euro fell over 1% and peripheral European...

Around the world, while women have gained significant ground on the issue of equal treatment under the law and norms of society, they still are not treated the same as their male counterparts in many economies. Christine Lagarde, head of...

Fasten your seat belts.  The ride is going to get bumpy.   Economists may differ on what the ECB will do.   Investors may differ on the market response.  This uncertainty ensures a strong market reaction. The euro is off about 0.25%...

The longer life expectancy of people in industrialised countries means governments are raising the ages at which citizens can apply for state pensions. In the UK, state pension age for both men and women is set to rise to 66...

German Chancellor Merkel was right. As the Greek crisis was winding down last summer, she noted that the refugee problem would be even more difficult.  In addition, indeed, it is. The refugee issue is challenging Merkel's leadership in Europe.  While...

South Asia’s economic potential has long been constrained by low levels of economic integration. Despite being closely linked geographically, culturally and historically, intra-regional trade is very low. A major problem has of course, been political difficulties within and between South...

The International Monetary Fund (IMF) has begun warning the largest economies in the world that a global economic catastrophe could occur if concerted action is not taken; however, many economists fear that the Group of 20 (G20) economies are unwilling...

The euro has peeled off a cent from yesterday's high near $1.1060 as some short-term players move to the sidelines ahead of the ECB meeting.  Recall that after peaking near $1.1375 on February 11 when the New Year's market angst...

Imagine a country in which there is no statutory right to paid holiday, no legal limit on the number of hours employees can be required to work, no right to a daily rest period, no laws to prevent employers discriminating...

A few weeks ago, investors were bemoaning a new bear market for equities, and there was much ink spilled drawing parallels between now in 2008-2009.  Falling commodities, weakening growth, and prospects of Fed tightening saw the MSCI Emerging Market equity...

North Korea’s relations with the wider world have taken a tangible turn for the worse. Pyongyang’s double whammy of a nuclear test on 6 January 2016 followed by a satellite launch on 7 February 2016 was arguably nothing new. The...