M3, Credit, Inflation
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Lessons from the 1970s
26.05.2008
By: Wolfgang Munchau
There is no prospect of a global depression. Our single most important problem is the rise in inflation at a global level, which the world's largest central banks have underestimated. The situaiton is worst in the US where we are seeing a return to the Arthur Burns Fed.
Let them eat cake...
22.04.2008
By: Wolfgang Münchau
Inflation, not global depression or a financial meltdown, is now the biggest problem facing the world economy. The core inflation measure, ever so popular among central bankers and academics, is a dangerously complecent metric that should be discarded.
So how about this rate increase?
22.04.2008
By: Eurointelligence ECB Watch
Believe it or not: The ECB policy stance is not neutral anymore. The central bank is more likely to raise interest rates now than to cut them.
Global liquidity drives house prices
17.04.2008
By: Ansgar Belke, University of Essen, IZA Bonn and ECB Observer group
Loose monetary policy and ample global liquidity have significantly contributed to the bull market in the real estate sector in OECD countries. By contrast, the reaction speed of consumer prices to the same shock is much lower, though clearly significant in the long run. This suggests that strong money growth might be a good indicator of emerging future bubbles in the real estate sector and that house prices might well serve as indicators of future inflationary pressures on goods markets.