central banks

Our take on the investing, financial, & economic themes of the day

Inflation Quandaries

12 July, 2017 by Mark O'Brien in Commentary
Monday’s Wall Street Journal (July 10, 2017, page A2) contains a remarkable article. It is remarkable because it reveals the assumptions and attitudes of the experts who are trying to administer the global economy in which we find ourselves. The headline of the article provides the ... read more...

Barron’s on Competitive Devaluation

2 February, 2015 by Matthew O'Brien, Ph.D. in Commentary
In my post from last week about central banks I argued that they are devaluing their currencies in a zero-sum game for stimulating their domestic economies at the expense of their trade partners.  A recent piece by Jonathan Laing in Barron’s echoes some of the same points.  Laing cites ... read more...

Competitive Currency Devaluation Continues Apace

29 January, 2015 by Matthew O'Brien, Ph.D. in Commentary
One of the first things that you learn about economic growth, if you learn anything at all, is that growth is not a zero-sum game.  That is, when a company like Apple increases its earnings by 40% or so, as it did last quarter, it didn’t simply “take” those earnings from its ... read more...