UK Economics Update Monetary Indicators Monitor (Aug.) Given how much money the Monetary Policy Committee (MPC) has now pumped into the economy through its quantitative easing (QE) policy, the Committee’s preferred measure of broad money growth remains... 20th August 2009 · 1 min read
UK Economics Update How fast does broad money need to grow? The Monetary Policy Committee (MPC) has recently put great store in the broad money figures as a measure of the effectiveness of its quantitative easing (QE) policy. Its preferred measure of money is... 10th August 2009 · 1 min read
UK Economics Update Banks’ results of little reassurance on the lending front Markets have reacted positively to the interim results released by the major banks in the past few days. Indeed, the banking sector appears to be getting back on its feet. But there was little in the... 5th August 2009 · 1 min read
UK Economics Update Banks’ results of little reassurance on the lending front Markets have reacted positively to the interim results released by the major banks in the past few days. Indeed, the banking sector appears to be getting back on its feet. But there was little in the... 5th August 2009 · 1 min read
Europe Economics Update NAMA unlikely to solve Ireland’s bank problems The Irish Government’s plans to set up a “bad bank” should eventually help to reduce the uncertainty surrounding the size of banks’ losses. But the sheer scale of the problems in the banking sector... 31st July 2009 · 1 min read
UK Economics Update Bank privatisation won’t prevent fiscal tightening Recent speculation that the Government may soon look to sell off its shares in some or all of the nationalised banks has raised the question of whether the proceeds from such sales might reduce the... 29th July 2009 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Jul.) The latest euro-zone money figures revealed that lending growth continues to slow. Of course, other things, equal, the ECB’s recent 12-month liquidity injection should help to boost bank lending in... 27th July 2009 · 1 min read
UK Economics Update Monetary Indicators Monitor (Jul.) The broad monetary aggregates are still showing little sign of responding to the Bank of England’s quantitative easing (QE) programme of asset purchases. We therefore continue to doubt that the QE... 20th July 2009 · 1 min read
Asia Economics Update Hot capital returns to China, raising inflation risks further The revival of confidence in China’s prospects appears to be drawing large amounts of speculative capital back into the economy, swelling the money supply and further raising inflation risks. Much of... 15th July 2009 · 1 min read
China Economics Update Hot capital returns to China, raising inflation risks further The revival of confidence in China’s prospects appears to be drawing large amounts of speculative capital back into the economy, swelling the money supply and further raising inflation risks. Much of... 15th July 2009 · 1 min read
Europe Economics Update Italian banks – weathering the storm better than most Italian banks have so far coped with the financial crisis better than most of their European peers. While this has not prevented a slowdown in lending, the problems in the supply of credit seem... 2nd July 2009 · 1 min read
Europe Economics Update Euro-zone Monetary Indicators Monitor (Jun.) The latest euro-zone money and credit figures revealed that, after having flattened off for some time, the monetary base increased again. The hope is that banks will feel encouraged to lend. But there... 30th June 2009 · 1 min read
