1 January, 2015 by The TZ Newswire Staff Comments Off on Cash and the zero lower bound
Cash and the zero lower bound
Let’s review the (alleged) zero bound problem. The nominal interest rate falls to zero. The Fed injects base money, and banks choose to hold it as excess reserves. The Fed could try to force banks to lend it out with negative interest on reserves (IOR), but in that case deposit rates would go slightly negative and the public would pull the money out and hold it as cash. The existence of cash creates an effective zero lower bound on nominal interest rates, or perhaps a lower bound of a few basis points negative, as there are costs of holding cash.
1 January, 2015 by The TZ Newswire Staff Comments Off on Mutual Funds Weekly: New year for stock investors should be just like the old one
Mutual Funds Weekly: New year for stock investors should be just like the old one
The first day of a new year is a chance to learn from the old year.
1 January, 2015 by The TZ Newswire Staff Comments Off on Dollar shines at start of year, euro hits low
Dollar shines at start of year, euro hits low
The dollar hit high levels, drawing strength from the U.S. economy’s data and the diverging outlook for monetary policies among major economies.
1 January, 2015 by The TZ Newswire Staff Comments Off on And 2015 Starts Off With A Bang – First Chinese Default Of The Year Hits
And 2015 Starts Off With A Bang – First Chinese Default Of The Year Hits
Well that didn’t take long… With the smell of fireworks still lingering in the air, Bloomberg reports that Chinese developer Kaisa Group defaulted on a HK$400 million ($51.6 million) loan triggered by forced repayment terms after the firm’s chairman resigned.
1 January, 2015 by The TZ Newswire Staff Comments Off on The Wall Street Journal: Former New York Gov. Mario Cuomo dies at 82
The Wall Street Journal: Former New York Gov. Mario Cuomo dies at 82
Mario Cuomo, who served three terms as governor of New York, died Thursday at his Manhattan home of natural causes due to heart failure.
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1 January, 2015 by The TZ Newswire Staff Comments Off on A Mania Of Manias
A Mania Of Manias
1 January, 2015 by The TZ Newswire Staff Comments Off on The Century Of The Self: Controlling The ‘Dangerous Crowd’ In An Age Of Mass Democracy
The Century Of The Self: Controlling The ‘Dangerous Crowd’ In An Age Of Mass Democracy
“This series is about how those in power have used Freud’s theories to try and control the dangerous crowd in an age of mass democracy,” begins Adam Curtis, as he describes the propaganda that Western governments and corporations have utilized stemming from Freud’s theories (and his nephew Bernays).