ECB policy is boosting the Bundesbank’s profits
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Author: Frederik Ducrozet
Categories: Pictet Macro Analysis, Swiss and European Macro
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This week the German Bundesbank published its 2017 annual report, which includes a number of interesting figures that are relevant to the broader (monetary) policy debate in the euro area. In particular, the Bundesbank provided details of the amount of securities held on its balance sheet for policy purposes, including QE, at the end of 2017, and the corresponding flows of income stemming from its asset purchases. Remember that QE is largely decentralised, with the ECB buying no more than 10% of assets itself.
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E-franc pipe dream fails to arouse Switzerland
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Author: Matthew Allen
Categories: Swiss Markets and News
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Mounting calls for Switzerland to introduce a blockchain-based national cryptocurrency continue to fall on deaf ears at the Swiss National Bank (SNB). Romeo Lacher, chairman of the SIX Groupexternal link that runs the Swiss stock exchange, recently added his voice to the debate by advocating such a virtual currency.
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Gold Corridor From Dubai to China Sought By China
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Author: Mark O'Byrne
Categories: GoldCore
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Gold corridor from Dubai to China sought by Chinese Gold & Silver Exchange Society. New Asian gold trading corridor could boost demand for 1 kg gold bars. Should increase turnover for yuan-denominated gold coins and bars – President. Secure supplies of physical gold from Middle East and Asia for China. China positioning itself as leading gold trading and owning nation.
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Emerging Markets: What Changed
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Author: Win Thin
Categories: Emerging Markets
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China plans to change its constitution to eliminate term limits for President Xi Jinping. Bank Indonesia Deputy Governor Perry Warjiyo was nominated by President Widodo to be the next Governor. Bank of Korea Governor Lee was reappointed by President Moon for a second term. Hungary ruling party candidate lost the mayoral vote in Hodmezovasarhely. S&P upgraded Russia to BBB- with stable outlook.
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Our Fragmented Labor Markets Defy Outdated Conventions
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Author: Charles Hugh Smith
Categories: The United States
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There are hundreds of extraordinarily diverse labor markets in the U.S. economy, and it takes a much more granulated approach to make any sense of this highly fragmented and dynamic marketplace. onventional economists/media pundits typically view the labor market as monolithic, i.e. as one unified market. The reality is the labor market is highly fragmented. Thus it's little wonder that conventional measures are giving mixed signals on employment, wage inflation, etc.
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Purchasing Power Parity or Nominal Exchange Rates?
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Author: Jayant Bhandari
Categories: Debt and the Fallacies of Paper Money
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“An alternative exchange rate – the purchasing power parity (PPP) conversion factor – is preferred because it reflects differences in price levels for both tradable and non-tradable goods and services and therefore provides a more meaningful comparison of real output.” – the World Bank
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