Tag Archive: Volcker

Open Letter to John Taft, Report 17 Dec

2019-12-18

by

2019-12-18

Silver Basis and Co-basis and the Dollar Price
Dear Mr. Taft: I eagerly read your piece Warriors for Opportunity on Wednesday, as I often do about pieces that argue that capitalism is not working today. You begin by saying: “Financial capitalism – free markets powered by a robust financial system – is the dominant economic model in the world today. Yet many who have benefited from the system agree it’s not working the way it ought to.”

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Lessons from History: The Volcker Moment and the First Cap on CHF

USD/CHF Dollar Swiss 1973-1989


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The History of the Swiss Franc



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Swiss Franc History: Volcker Shock, Oil Glut and the Breakdown of Gold and Emerging Markets

gold inflation
After the Volcker moment or sometimes called "Volcker shock", commodity prices plunged, the gold price collapsed. Thanks to additional supply, e.g. from Northsea oil, a so-called oil glut appeared. After the increase of debt in the 1970s, some economies in Southern America collapsed. The major reason was Volcker's tight monetary policy with high interest rates and the dependency on US funds.

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Swiss Franc History, 1970s: Due to US Stagflation CHF Strengthens Massively

USD-DEM-CHF 1977-1979
We shows the massive appreciation of Swiss franc and German mark in the 1970s, the reasons were: stagflation and the wage-price spiral.

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Swiss Franc History: Volcker’s defeat of inflation strengthens dollar, weakens Swiss franc



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Introducing the “reverse Volcker moment”



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Traditional Monetarist vs. Market Monetarists

econschools
Along the double mandate of the federal reserve, monetarists can be divided into. - traditional monetarists that focus on a slow increase of money supply in order to avoid price inflation. - Market monetarists that want to target growth and income instead of inflation.

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History: The Lost 1980s Decade in Latin America

Peripheral Europe is going to follow step and step the Mexican and the resulting Latin American debt crisis of the 1980s.

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Die Wiederwahl Obamas bedeutet nichts Gutes für die Schweiz

2012-11-07

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2012-11-07

Obama
  Barack Obama war und ist der präferierte Kandidat vieler Schweizer. Obama scheint der Mann von Welt zu sein, während vom konservativen Mitt Romney eher feindselige Politik gegen Russland, China und Iran zu erwarten ist. Daher sind die Neutralität- und Frieden-liebenden Schweizer eher auf Obamas Seite. Aber auch wirtschaftspolitisch scheinen viele Eidgenossen Obama zu mögen. …

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How former central bankers stepped up against the central banks

Central Bankers against Central Bankers Banned Weber Stark Issing
There are already three former European central bankers who criticize more or less openly the European Central Bank (ECB).

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Written in February 2012: Will the EUR/CHF never rise over 1.22 or 1.23 again?

Our analysis from February 2012 shows astonishing accurateness: It predicted that the euro would not rise against CHF and that the commodity currencies were overvalued and subject to correction. Basic foreign exchange theory, the SNB price stability mandate and strong fundamentals for Switzerland and bad ones for the peripheral countries of the euro zone speak for the thesis that the EUR/CHF exchange rate might never go over the level of around...

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Oil price increases in 2012 and why they are not real

2012-02-26

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2012-02-26

Gasoline consumption
Oil prices  Oil prices will rise quickly this year along with the recovery, the Iran issues and last but not least driven by investor demands of yield, implemented in the HFT algos. Interestingly the Iran issues already existed in December, but oil prices were falling, at that moment investors did not believe in a global recovery yet, …

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