Rolling over in credit stats, particularly business debt, is never a good thing for an economy. As noted yesterday, in Europe it’s not definite yet but sure is pronounced. The pattern is pretty clear even if we don’t ultimately know how it will play out from here. The process of reversing is at least already happening and so we are [...]
At his last news conference on June 3, ECB chief Mario Draghi issued his list of successes so far with QE in Europe. The program was only announced four and a half months ago, being operational only for two, but he was positive that it was already having its intended effects. "Our monetary policy measures have contributed to a broad-based [...]
If you go back and review the academic literature from the 1960’s up until the 1980’s as it related to monetary policy and recession, you find a rather solid foundation for credit as a means of deconstructing contractionary forces. The interface between expectations and actions had typically occurred within the realm of business credit, whereby deepening pessimism was “passed off” [...]
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