Europe Economics Update Deleveraging in Denmark: what lessons for other Nordics? Household spending in Denmark has barely recovered since its housing bubble burst in 2007 and there appears little respite ahead for households. With rising debt now fuelling housing booms in Sweden... 25th April 2013 · 1 min read
UK Economics Update Limited reforms to FLS don't transform the lending outlook Today’s modifications to the Funding for Lending Scheme should make it a more effective tool in reducing the cost of loans for small companies. But with banks undercapitalised and the demand for... 24th April 2013 · 1 min read
US Economics Update Monetary Indicators Monitor (Mar.) Despite the Fed’s continuing quantitative easing, the growth rates of the broad monetary aggregates have actually fallen over the past few months. The annual growth rate of our measure of the broadest... 22nd April 2013 · 1 min read
Japan Economics Update Monetary Indicators Monitor (Mar.) The latest data on Japan’s monetary aggregates, which predate the Bank of Japan’s policy shift earlier this month, illustrate why a radical change was needed. But they also underline that the success... 19th April 2013 · 1 min read
Europe Economics Update Belgium: not necessarily the core's weakest link? We have previously warned that Belgium shares several characteristics with peripheral economies, such as high public debt, banking problems and falling competitiveness. But the economy also enjoys... 18th April 2013 · 1 min read
Emerging Markets Economics Focus Introducing the Capital Economics Risk Indicator Although emerging markets (EMs) have experienced rapid growth over the past 30 years, this period has been punctuated by occasional economic and financial crises. These have typically been preceded by... 16th April 2013 · 1 min read
Europe Economics Update Cyprus: The bail-out thickens The dramatic increase in the size of the proposed rescue package for Cyprus both underlines the depth of the problems facing the country and poses further questions over the likely impact of future... 11th April 2013 · 1 min read
China Data Response Lending (Mar.) & FX reserves (Q1) The stronger-than-expected rise in bank lending in March will reinforce concerns that credit growth is on an unsustainable path. Meanwhile, the People’s Bank has resumed its accumulation of foreign... 11th April 2013 · 1 min read
UK Data Response Credit Conditions Survey & Housing Equity Withdrawal (Q1) The Bank of England’s latest Credit Conditions Survey indicates that the Funding for Lending Scheme is still having a positive impact on the supply and cost of credit. But even if lenders follow... 3rd April 2013 · 1 min read
UK Economics Update Monetary Indicators Monitor (Mar. 13) The slower growth in the broad money supply in February suggests that the previous month’s pick-up was just a blip. Meanwhile, bank lending to the private sector is still flat-lining, adding to the... 2nd April 2013 · 1 min read
US Economics Weekly US depositors unlikely to suffer same fate as Cypriots The Cypriot bank bailout, which imposed losses on bondholders and large depositors, is never likely to be repeated in the US. For a start, while the Cypriot banking system is equivalent to a massive... 1st April 2013 · 1 min read
China Economics Update China moves to manage shadow banking risks The latest tightening of rules on wealth management products will help manage risks building up in China’s shadow banking system. But the long-term route to reducing risk is careful liberalisation of... 28th March 2013 · 1 min read
Global Economics Update Global Monetary Indicators (Mar.) The paths of narrow money in the US and euro-zone diverged further over the past few weeks. The Fed maintained the pace of its assets purchases. But in the eurozone, commercial banks continued... 28th March 2013 · 1 min read
Emerging Europe Economics Update Don't underestimate Ukraine's exposure to Cyprus Most attention has focussed on the impact that the Cypriot bail-out could have on Russian depositors, but the deal may pose much bigger risks for Ukraine, which is already on the brink of a balance of... 28th March 2013 · 1 min read
Emerging Europe Economics Update Cyprus crisis could exacerbate slowdown in Russia The loss to Russian investors from the levy on Cypriot bank deposits remains uncertain, but a plausible estimate is somewhere around €5bn. This is fairly small in the grand scheme of things and the... 28th March 2013 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Feb. 13) The latest euro-zone monetary data showed more mixed developments in financial markets than in previous months. And there is still limited evidence of a pick-up in credit to the private sector. 28th March 2013 · 1 min read
