Monetary Policy

Global Stocks Soar To Record Highs On "Dovish" Fed, Dutch Vote

World stock indexes surged to record highs on Thursday while the dollar traded close to a one-month low after the Federal Reserve hiked U.S. interest rates but signaled no pick-up in the pace of tightening, while the Dutch elections were broadly interpreted as a drop in support for Europe's anti-establishment powers.

Bank Of Japan Leaves Policy, Economic Outlook Unchanged

Confirming the expectations of all 41 economists, The Bank of Japan changed absolutely nothing about its monetary policy tonight following The Fed's 3rd rate hike in 11 years. The BOJ said in a statement that it would keep the two key rates at current levels, maintain the pace of its asset purchases, and did not change its economic outlook.

China Unexpectedly Tightens Monetary Policy

Following The Fed's 3rd rate hike in 11 years, the PBOC decided, unexpectedly, to follow in the Fed's footsteps, and tighten conditions by raising the interest rates on its open-market operations, the 7-, 14-, and 28-day reverse-repos, by 10bps each, to 2.45%, 2.6% and 2.75% respectively.

Paul Brodsky: "Stagflation On The Horizon"

Logic and current trends suggest that declining output growth accompanied by higher prices will begin hitting economies and facing policy makers in the coming years. Markets should begin sniffing out this stagflationary macroeconomic setup this year.

What Economists Are Not (And Shouldn't Try To Be)

Economists should not “design the tap” or “lay the pipes” of economic policies. The market doesn’t need “economist-plumbers” (or “economist-scientists,” for that matter) any more than it needs government intervention in the first place.

The US Is About To Hit $20 Trillion In Debt: Here's How It Affects You

As the vulture pundits in the mainstream media pick apart hollow political scandals, the essential bankruptcy of the federal government looms just ahead. The national debt is creeping toward 20 trillion dollars, and the United State’s largest problem is once again staring the world in the face.