Pragmatic Capitalism

Practical Views on Money & Finance

‘Chart Of The Day’

Reminder: Tapering is not Tightening

A strange thing has happened ever since the “tapering” began last December – interest rates have fallen, stocks have risen and inflation expectations have actually increased.  This is almost exactly the opposite of what many people might have expected.  After all, if “tapering is tightening” and QE is “money printing” then something doesn’t add up… Read More

Why and How the ECB Might Implement QE

Important chart here from Michael McDonough at Bloomberg. It shows the spread between Italian sovereign bond yields and corporate bond yields. As you can see, as the government yield has fallen quite dramatically the corporate yield hasn’t followed.