The Euro has been a disaster since its birth in 1999. Its monetary pathologies led to youth unemployment rates of 50 – 60% in Greece, Spain and the Italian Mezzogiorno. It gave a trillion-dollar windfall to German exporters at the expense of the hapless Club Med and amplified Berlin’s diktat over the lands once occupied […]
inflation
The sad story of global inflation Cycles come to an end because central banks raise interest rates to suppress inflation.
Whatever the popular story of the time, the reason that cycles come to an end is that central banks raise interest rates to suppress inflation. Initially, business and consumer confidence prevents interest rates from having an immediate effect. Later, leverage and over-expansion on two or three sectors of the economy usually cause a bigger decline […]
The problem with central bankers’ inflation preoccupation A preoccupation with inflation deepened the last recession
In recent years, a growing number of prominent economists, including Michael Woodford, Christina Romer and Larry Summers, have switched their allegiance from inflation targeting to targeting nominal GDP, the non-inflation-adjusted sum of all spending in the economy. One of the best ways to understand the growing popularity of NGDP targeting, is to re-examine what went […]
Use monetary policy to solve the housing crisis The strategic course that needs to be taken
The strategic course that needs to be taken. […]
Will the global housing boom end in disaster? Ian Stewart, Chief Economist at Deloitte, considers the statistics
Ian Stewart, Chief Economist at Deloitte, considers the statistics. […]
The anatomy of a British pound collapse Our Macro commentator on the outlook for sterling
Our Macro commentator on the outlook for sterling. […]
On risk, inflation and gilt yields Does recent movement in the 30 year gilt yields imply a knock-on effect in property?
Does recent movement in the 30 year gilt imply a knock-on effect in property? […]
London property faces a bear market in 2018 Why the UK is heading for a period of stagflation
Why the UK is heading for a period of stagflation. […]
What Trump’s political scandal means for investors The latest on the White House's influence on the financial markets, from Matein Khalid
Matein Khalid asks: is the Wall Street sell off just an ephemeral market or something more ominous, a trend change, requiem for the bull market? Plus his latest thoughts on the Karachi stock index and the overvaluation of Credit Suisse shares. […]
The View from Berkeley Square This week, Robert Fowlds reflects on political change and retail portfolios
Chaos in Washington and dollar weakness, combined with the Macron win, has had a major impact on markets. For a sterling investor, the global real estate sector is flat YTD, but the Americas is down 6% compared to Europe up over 8% including the UK up c. 7%. But the UK sector performance has been credible in spite of […]