The idea that monetary and fiscal policy can and ought to be used to ameliorate the business cycle, to avoid the kind of boom/busts that lead to social instability and radical ideologies is a rather modern notion, and it remains somewhat controversial. Many now see it as hubris that policymakers can tame the business …
The euro peaked a month ago near $1.2090. It recorded a low near $1.1670 after the weather-skewed US jobs data seen at the end of last week. The euro recovered from the weekend and set new session highs late US dealings. That reversal pattern marks the end of the month-long decline. There has been follow-through …
It is Friday and the Dollar is Firmer Again – Marc to Market Edit As Nassim Taleb instructed, we should not be fooled by randomness. If you see six red results in a row at a roulette table, do not conclude the game is rigged. If you flip a coin, and it is tails six consecutive times, …
With 17 simple words and the help of clarification from her deputy, Yellen changed the near-term dynamics in the capital markets. By saying that “…I believe that case for an increase in the federal funds rate has strengthened in recent months,” Yellen placed her marker down. Yet the market was initially confused. It thought the Chair was …