Flash China Manufacturing PMIā¢ at 48.1 in March (48.5 in February). Eight-month low.
Would Keynes Have Called this a “Liquidity Trap”?
“after the rate of interest has fallen to a certain level, liquidity-preference may become virtually absolute in the sense that almost everyone prefers cash to holding a debt which yields so low a rate of interest. In this event the monetary authority would have lost effective control over the rate of interest.”
The Infiltration of Economics
One of the most exciting macro trends driving the world today is the incredible dissemination of information and knowledge through the internet. We are all more interconnected than we’ve ever been. And we have access to people, information and knowledge like never before.
3 Reasons NOT to Tap Into Home Equity To Buy Stocks
If you hate your money don’t read this post.
Who’s Where in the Economic Growth Cycle?
Here’s a nice bit of global macro perspective on the state of different economies in the business cycle. Clearly, this is an approximation, but I have a feeling they’re pretty close to right here:
Rail Traffic Continues to Show Expansion
Rail traffic continues to show signs of growth here as intermodal traffic surged 11.9% in the latest week. This data can be volatile at times, but the 12 week moving average remains fairly healthy at 3.2%. No major change in trend and still, in my opinion, consistent with a muddle through economy.
Inflation Expectations – on the Fast Track to Nowhere
If you’re worried about high inflation then you must definitely think that the markets have things all wrong.
The Money Multiplier Doesn’t Exist Outside of the Zero Lower Bound Either
I bashed the Austrians today so I might as well go ahead and bash the Keynesians while I am at it….
The Bank of England Goes [Insert Your Ideology Here]
Did the Bank of England just confirm your economic ideology? Probably not….