3 January, 2016 by The TZ Newswire Staff Comments Off on Yes, interest rates really do impact the demand for money
Yes, interest rates really do impact the demand for money
Britonomist recently left this comment, in response to my claim that the demand for cash is negatively related to the market interest rate (and the demand for reserves is negatively related to the market interest rate minus IOR):
Do you mean cash here? I think for almost everyone the demand for cash is extremely inelastic in a modern economy. Lowering interest rates won’t cause people to rush to their bank account to withdraw money.
3 January, 2016 by The TZ Newswire Staff Comments Off on More again from Fed’s Mester: More than 4 hikes in 2016 likely appropriate
More again from Fed’s Mester: More than 4 hikes in 2016 likely appropriate
More comments from Cleveland fed head Loretta Mester
Reuters with the headlines again from Mester – this time from an interview
Mester interviewed by Reuters
3 January, 2016 by The TZ Newswire Staff Comments Off on Oregon Standoff: A Terrible Plan That We Might Be Stuck With
Oregon Standoff: A Terrible Plan That We Might Be Stuck With
3 January, 2016 by The TZ Newswire Staff Comments Off on ANZ on the 2 China manufacturing PMI’s: GDP growth in Q4 unlikely to have improved from Q3
ANZ on the 2 China manufacturing PMI’s: GDP growth in Q4 unlikely to have improved from Q3
Who was around on New Year’s Day? ICYMI,
the official China manufacturing PMI came in at 49.7
Pre-empting somewhat the poor performance from today’s private-sector manufacturing PMI ( )
3 January, 2016 by The TZ Newswire Staff Comments Off on Dollar hovers near 2-week high, eyes policy divergence for support in 2016
Dollar hovers near 2-week high, eyes policy divergence for support in 2016
The dollar hovered near a two-week high on Monday in the first trading session of 2016, market expects divergence in central bank monetary policies.
3 January, 2016 by The TZ Newswire Staff Comments Off on Asia shares, currencies tumble; oil jumps at start of 2016
Asia shares, currencies tumble; oil jumps at start of 2016
Asian shares and currencies fell on Monday on the first day of trading in 2016 after China factory activity contracted and the yuan weakened, while oil prices jumped as much as 3 percent on rising tensions in the Middle East. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.7 percent, after shedding nearly 12 percent in 2015 as China’s cooling economy took a toll on its trade-reliant Asian neighbors and global commodity prices. Japan’s Nikkei (.N225) fell 2.6 percent to 2-1/2-month lows, while mainland China shares (.SSEC) tumbled more than 4 percent.
3 January, 2016 by The TZ Newswire Staff Comments Off on Honda says not considering new lending to Takata
Honda says not considering new lending to Takata
Honda Motor Co. said on Monday it was not considering fresh lending to Takata Corp, the auto parts supplier at the center of a global recall over faulty airbag inflators, either on its own or as part of a group of Japanese automakers. “We are not considering joint lending (to Takata),” a Honda spokesman said, following a report by Japan’s Sankei newspaper that automakers were discussing fresh financial support for the supplier.