Monthly Archives: August 2013

A sideways thought on de-coupling

I’m a hardcore pessimist on the euro-area — perhaps because I’ve spent too much time on the Great Depression. As the saying goes, give a person a hammer, and everything looks like a nail.┬áBut I’ll concede one thing: if de-coupling … Continue reading

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How not to do ‘forward guidance’

What is the only option for a central bank up against the ‘zero lower bound’ (i.e. the policy interest rate has been set to zero) and whose asset purchases (‘quantitative easing’) have little traction? Answer: inflation expectations. The whole point … Continue reading

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