Economics

When a central bank lifts interest rate targets by 0.5% it expects households and firms to respond. In a crisis, the official target may fall by 3% in order to shock the economy into a positive response. These movements of...

The election in Spain did not lift the uncertainty but re-redoubled it.  Given the outcome, it is difficult envision a majority government.  Purely looking at the numbers, a coalition between the Popular Party and the Socialists is simplest solution.  It...

The World Trade Organization (WTO) closed its Nairobi Conference over the weekend with some agreements and new directions many -- both in the negotiations and reporting on their outcome -- found surprising. Indeed, some say the changes may have such...

The broad interpretative framework we developed since late 2014, one that centers the de-synchronization of the major economies, will retain its usefulness into the New Year and beyond. The Federal Reserve standing pat after winding down their open-ended asset purchase...

The dollar rose against all the major currencies over the past week.  The divergence meme we have emphasized has continued to unfold.  The ECB eased policy at the start of the month.  Less than 48 hours after the Fed hiked...

Three, two, one, liftoff! Alex Nikolsko-Rzhevskyy, Lehigh University It finally happened: the nine-year-long spell of near-zero interest rates came to a logical end. The Fed raised its funds rate target in the first step toward normalizing US monetary policy. Was...

If given the option to choose an economy that is the largest non-World Trade Organization (WTO) member, most people would not guess Iran. Most people would be wrong. If given the option to choose an economy that is the largest...

The Bank of Japan was the fourth major central bank to meet this week.  Sweden and Norway kept policy unchanged.  The Fed hiked.  There was no expectation that the BOJ would do anything.  Governor Kuroda surprised the market with largely...

At this week’s 10th World Trade Organization (WTO) Ministerial Conference in Nairobi, Kenya, trade ministers are trying to advance 15 years of Doha Development Agenda talks to reduce trade barriers. The real issue, however, is whether African economies can follow...

India–Japan ties have never been as strong as they are today. The trajectory of upward swings began a decade ago and has accelerated in the last few years. But the newfound chemistry between Japanese Prime Minister Shinzo Abe and his...

Today, almost 200 nations have united in a global agreement on global change. However, the efforts of a few can still undermine the hopes of the many. After the 1992 Kyoto Protocol, it took almost a quarter of a century...

The refusal of the US Congress to accept a new and higher quota (money) to the IMF stymied governance reforms for five years.  This has frustrated efforts to integrate the developing countries, especially the large ones, like China, better into...

The job market is strong and Americans are in great economic shape, Federal Reserve Chairwoman Janet Yellen said in a press conference yesterday. After making a move that will make credit cards, mortgages, student loans, and many other forms of...

Asia extended the US dollar's post-Fed gains while Europe has seemed content to consolidate the move, perhaps waiting for US leadership. Asia extended the US dollar's post-Fed gains while Europe has seemed content to consolidate the move, perhaps waiting for...

For the first time in 9 years, the Federal Reserve has raised interest rates in a move that could make many loans more expensive for companies and Americans.  Speaking today in Washington D.C., Federal Reserve Janet Yellen discussed the Federal...