EUROPE
What Does the ECB’s
‘Sterilization’ Program Do? – WSJ
One option that has gained ground in recent weeks is for the ECB to
suspend its nearly four-year-old policy of draining funds from euro-zone banks
on a weekly basis, a process known as sterilization.
Euro Area —
“deflation” versus “lowflation” – iMFdirect
So far there is no sign of classic deflation, i.e., of widespread,
self-feeding, price declines. But even ultra low inflation can be problematic
for the euro area as a whole and for financially stressed countries, where it
implies higher real debt stocks and real interest rates, less relative price
adjustment, and greater unemployment. Along with Japan’s experience, which
saw deflation worm itself into the system, this argues for a more pre-emptive
approach by the ECB.
Industrial producer
prices down by 0.3% in euro area – Eurostat
UNITED STATES
Fed Talk Shifts to
Higher Rates – Tim
Duy’s Fed Watch
The timing of the first rate hike and the subsequent tightening is
dependent upon the consensus on overshooting.
If wage growth starts to accelerate, the Fed's focus will shift from
fears of too much to too little slack.
If they are concerned about overshooting, they will need to accelerate
the tightening time line. Where Yellen
ultimately falls on the issue is critical.
A Better Rule for
Predicting Fed Policy – WSJ
Adding job growth to monetary policy models that rely on the
unemployment rate alone make them better predictors of Federal Reserve policy
over time, a Cleveland Fed paper released Tuesday finds.
Seven things you
absolutely need to know about Obama’s budget – WaPo
.
Explore 60 years of
budget deficits in one chart – WaPo
Five basic questions
about Obama’s budget that you were not afraid to ask – WaPo
EMERGING
Why Were Some
Emerging-Market Countries Hit Harder by Taper Talk? – WSJ
Emerging-market
nations that fared worst during 2013's so-called "Taper Tantrum" were
those whose financial houses were in some level of disorder, a new paper from
the Federal Reserve Bank of San Francisco argues.
OTHER
How much longer? – The Money Illusion
Some questions for
various old monetarists, Austrians, gold bugs, and other conservatives:
Global manufacturing
on the rise despite crises – TradingFloor
Mads Koefoed: There may be abundant risks potential headwinds for the
global economy but manufacturing is still expanding at a moderate pace, which
continues to point to a pick-up in growth this year.
The Great Divide
over Market Efficiency – Institutional
Investor
Hedge-Fund Genius
Isn't Really Sold on Hedge Funds – View
/ BB
The Nobel committee decided to split the economic prize between Eugene
Fama and Robert Shiller – and that’s okay.
FX Board for March 4,
2014: Wherefore art thou, volatility? – TradingFloor
John J Hardy: The major currencies are trying to unwind the recent
reaction to developments in Ukraine, a development that
continues to leave trend followers in the lurch. Perhaps upcoming event risks
can provide a directional signal.
Great Graphic: Euro
and Yen and S&P 500 – Marc
to Market
FINNISH
Onko valtion velkaantuminen vaaraksi? – Sixten
Korkman / HS
Hypolta synkkä arvio asuntomarkkinoista – Verkkouutiset
Rupla ja Suomen vienti – Roger Wessman
Insinööri Pekka Lonka kertoo, kuinka Nokian
ihme luotiin ja tuhottiin – HS
Nokia teki
kahdenkymmenen viime vuoden aikana ihmeen kännyköiden valmistajana. Nyt
kännykät on myyty ja tuhannet ihmeen tekijöistä ovat työttöminä. Yksi heistä on
insinööri Pekka Lonka.
Pääkirjoitus 4.3.2014: Kriisissä euro käy
kalliiksi – IL
Yhteisvaluutta
toimii - mutta vain hyvän sään aikana.
Putin: Eivät ole venäläisjoukkoja - Suomen
Sotilas: 99 prosentin todennäköisyydellä VDV:n erikoistoimintamiehiä – Verkkouutiset
”Strutsipolitiikan” loppu ja Suomen
”realitycheck” – Arto
Luukkanen / US