Continue reading “Here’s how Australian Money Velocity has changed over the years”
Sovereign Credit Ratings for each Country
2018 has seen a lot of activity for changes in Sovereign Credit Ratings for countries. Here are the countries for which ratings changed in 2018 followed by the complete data set including maps,
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Have U.S. tariffs on Steel and Aluminium imports really increased domestic production?
We wrote about the economics behind the 25% tariff on Steel imports and 10% tariff on Aluminium imports to the United States earlier this year. One of the main justifications of the tariffs were that they will increase domestic production. Some statistics released earlier this week provide an answer to whether the tariffs have really increased domestic production.
Technology Companies granted an astonishing amount of Restricted Stock Units by value in 2017 (and banks were left way behind)
Restricted Stock Units (RSU) are company stock (or shares by another name) granted to employees as a form of compensation. Employers save some tax, and it generally aligns the long-term interest of employees (and shareholders) as it normally carries a vesting period. 2017 was great for technology company share prices and technology companies granted an eye-watering amount of Restricted Stock Units by value leaving banks way behind …
Here’s why the Federal Reserve increasing interest rates could be a problem
The reasons aren’t what you think …
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The four balance sheet vulnerabilities that are the biggest danger to financial stability as per the IMF
The International Monetary Fund (IMF) published one of its most comprehensive studies of the state of banking and markets since the financial crisis titled, “Global Financial Stability Report – A Decade after the Global Financial Crisis: Are We Safer?” The October 2018 Global Financial Stability Report finds that global near-term risks to financial stability have increased somewhat, reflecting mounting pressures in emerging market economies and escalating trade tensions.
The Real Economics of Brexit
“Geography has made us neighbors. History has made us friends. Economics has made us partners, and necessity has made us allies.” – John F. Kennedy
Don’t rule out high or hyper inflation in the road ahead
Germany accounts for almost all the intra European Union current account surplus plus the European Union posts a record external current account surplus with the U.S.
Sixteen members of the European Union recorded current account surpluses, eleven current account deficits and one was in current account balance in the second quarter of 2018 for the total (intra-EU plus extra-EU) current account balances of the European Union (EU28) Member States.
The highest surpluses were observed in Germany (+€63.8 bn), the Netherlands (+€16.8 bn), Italy (+€10.5 bn), Ireland (+€10.2 bn) and Denmark (+€3.6), and the largest deficits in the United Kingdom (-€20.7 bn), Romania (-€2.6 bn) and Belgium (-€2.4 bn).
The Bank of England Balance sheet has been expanding rather quickly recently
Mark Carney, the Governor of the Bank of England gave a speech on Guidance, Contingencies and Brexit at the Society of Professional Economists on the 24th May 2018. Essentially, the speech said the Bank was well prepared for any “potential path” of Brexit. What it didn’t mention was the rapidly expanding balance sheet.
Continue reading “The Bank of England Balance sheet has been expanding rather quickly recently”