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Monday, December 30

30th Dec - Final moments





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EUROPE
Draghi Sees No ‘Immediate’ Need for More Rate Cuts, Spiegel SaysBB
No need for further cuts to the institution’s benchmark rate amid “encouraging signs” that the euro crisis may be resolved

Mario Draghi Spiegel Interview 30 DecemberECB

Münchau: The single biggest risk to global financial stability remains the eurozoneFT

Turkey - corruption scandal shakes Turkish markets stronglyDanske Bank

UNITED STATES
Financial Regulators’ Fine MessSimon Johnson / Project Syndicate
When an athlete breaks the rules, it is easy to figure out whether the relevant disciplinary body really wants to discourage repeat offenses. The recent $13 billion settlement between the US Department of Justice and JPMorgan Chase, one of the world’s largest international banks, should be viewed the same way.

Economic Policy: What Has Changed in 25 Years?WSJ
David and Jerry look at the past 25 years in economic policy and what may come in the near future.

  FEDERAL RESERVE
Fed Finds Herding Investors Isn’t EasyWSJ
The big risk central bankers face right now is that the herd will drive interest rate expectations too far for the good of the economy.

El-Erian Warns "Fed May Have Won The 'Taper' Battle; But Are Yet To Win The 'QE-Exit' War" ZH

US broad money supply growth slowsSober Look

On Challenging the FedTim Duy’s Fed Watch
The Fed's stated expected rate path looks overly dovish relative to policymakers' growing belief that the declining unemployment rate should be taken at face value and their dismissal of low inflation when making the decision to taper.  Consequently, short rates are moving higher, taking long rates with them.

Inflation, Wages, and PolicyTim Duy’s Fed Watch
The fact that wages are rising while unemployment remains high is probably something of a puzzle [to the Fed], and lends credence to the stories that the labor market is currently affected by severe structural issues

ASIA
Japan Optimism RekindledWSJ
The latest economic data from Japan is providing some good news for Prime Minister Shinzo Abe as he tries to demonstrate that his “Abenomics” economic program is still going strong.

OTHER
FX Outlook: Dollar Weakness is Really Euro and Sterling Strength Marc to Market
Even in recent days, as the euro and sterling climbed to two-year high, the yen slumped to five-year lows, and Australian and Canadian dollars remain pinned near multi-year lows.

Unconventional monetary policy - the Indian experience with crisis response and policy exitBIS
Speech by Mr Deepak Mohanty, Executive Director of the Reserve Bank of India, at the Reserve Bank Staff College (RBSC), Chennai, 26 December 2013.

Overcoming deflation and afterBIS
Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at the Meeting of Councillors of Nippon Keidanren (Japan Business Federation), Tokyo, 25 December 2013.

The most obvious source of cyclical asymmetry is not a nominal rigidityMacroMania

No Joking Matter: The IMF’s EmbarrassedAll About Alpha
The IMF has been embarrassed by recent events and hopes to prove that its approach to debt restructurings is not all about the 'occupation' of debtor nations. So it seems determined to make life more difficult for the bondholders of insolvent sovereigns.

FINNISH
Suomen talouteen eurokriisi on iskenyt kovemmin kuin 1990-luvun lama aikoinaan!Tyhmyri

Mainio vahtikoiraHenri Myllyniemi / US

Asiantuntija: Työvoimapulaa ei oteta vakavastiMTV
Työnantajajärjestön asiantuntijan mukaan yritysten rekrytointiongelmia ei oteta vakavasti, kun samaan aikaan on toisaalla paljon työttömiä.

Suomi ei elä vain vientikysynnästäJuhana Vartiainen / VATT

Juhana Vartiainen ja työn tarjonnan suhde kysyntäänTyhmyri
Todellisuudessa Vartiainen puhuu sisäisestä devalvaatiosta eli palkkojen laskemisesta -

Suhdannekuva pysyi joulukuussa yhä vaisunaEK

Sijoituskohteet hupenevat - eläkerahat vaarassa karata ulkomailleYLE
Eläkeyhtiöiden suursijoitukset uhkaavat paeta ulkomaille, jos Suomen talouskehitykseen ei saada vauhtia. Suomen suurimman sijoittajan, eläkeyhtiö Varman uuden toimitusjohtajan Risto Murron mukaan suomalaisyritysten rapautuminen alkaa olla jo huolestuttavaa.

Miksi markka devalvoitiin 1991 ja päästettiin kellumaan 1992Tyhmyri
Oliko työttömyydellä vaikutusta?