Blog posts tagged by tag: Banking Sector
The anxiety of the small saver in a world of negative interest rates
A year ago I wrote a series of articles on monetary policy action by central banks in recent decades. I began by summarizing the state of affairs of a global economy in which central banks have acquired an enormous role so much so that their continuous interventions, first conventional and then "extraordinary", have become an everyday economic reality. While their role in managing the global financial crisis was key as they avoided a collapse in the liquidity of the system that would have undoubtedly aggravated the depression, their effectiveness in facilitating a return to growth, job creation, global deleveraging, financial sector risk reduction, sustainability of public finances and structural imbalances in their respective states is doubtful.
Forward Guidance, a primer
Central bankers do not have an easy job at the best of times. They must work in a world of constant yet random shocks, imperfect models and political pressures, while trying to hit a moving inflationary target six months to a year down the line. All of this while working with a rather limited arsenal. Since 2008, central banks (CB) have used the interest rate as the primary tool to influence economic policy. Interest rates have approached, or in some cases even exceeded, the zero lower bound, with no sign of definite recovery. Drastic times call for drastic measures and central bankers have resorted to so-called unconventional monetary policy in order to provide additional monetary accommodation as a last resort. One such unconventional method termed “forward guidance” has been employed in one form or another by CBs around the world.
Top Posts
The Mobile Ecosystem & Latin America's Economy
FocusEconomics Announces 2017 Analyst Forecast Awards Winners
Latin America’s rising unemployment bucks nearly decade long trend
Interview with Oxford Economics Senior Economist on implications of the possible outcomes of the French Presidential Election
2017 & 2018 Economic Outlook for the Top Oil Producing Countries
Top Economics & Finance Blogs of 2017
China: Recent postive economic data may be papering over the cracks
Featured Posts
Taxes or cutbacks? Latin America's challenge of sustaining spending without causing debt to skyrocket
Are uranium prices making a comeback?
Taxing the Economy: Achieving a Delicate Balance
Gold: The Most Precious of Metals (Part 3)
Escape from the Central Bank Trap by Daniel Lacalle
What economy will the new Dutch government inherit?
2017 & 2018 Economic Outlook for the Top Oil Producing Countries
Tags
Australia European Union Industrial Metals Commodities Consensus Forecast Forex Base Metals Commodities Company News Sub-Saharan Africa Eastern Europe Italy Japan Argentina World Bank India Euro Area Commodities Portugal Inflation Greece Iran Mexico USA Turkey UK Banking Sector precious metals Major Economies Unemployment rate OPEC Oil IMF Fed Investment Brazil Ukraine Tunisia Asia Latin America Economic Growth (GDP) Canada United States Vietnam Panelists Nordic Economies Agricultural Commodities Africa Gold G7 South Africa Housing Market Russia Emerging Markets France Brexit Financial Sector Precious Metals Commodities Energy Commodities Infographic Venezuela Exchange Rate oil prices Germany China MENA Spain Trade ColombiaTwitter @FocusEconomics
Desjardins co-op hails strong growth, reports surplus earnings of CAD 581m Read more: https://t.co/6Xmij2hHsn via @coopnews by @AncaCoopNews
43 minutes ago
Cambio de expectativas: mercado de futuros pasó el dólar a fin de año de $19,30 a $18,66: https://t.co/PYFqzpk0HF via @iProfesional
1 hour ago
Russia: Industrial production growth slows in July https://t.co/lU1MQ8lZAd https://t.co/2fRl5yj98Q
2 hours ago
Eurozone - 2nd estimate confirms robust Q2 expansion. Get the full story from Senior Economist Angela Bouzanis here… https://t.co/rnRIqYeGbN
3 hours ago
Italy 🇮🇹: Economy keeps pace in Q2. Full story + new Consensus growth forecasts: https://t.co/rkcI9Ubn2u 👀
3 hours ago
Blog archive
- Are uranium prices making a comeback?
- Taxing the Economy: Achieving a Delicate Balance
- Is the UK really "shackled to a corpse"?
- How will Latin America’s upcoming lengthy election cycle affect the reform agenda and credit ratings?
- How will emerging market economies perform in 2017?
- Chilean Economy in Focus: Interview with Senior Economist of the Chamber of Commerce of Santiago
- CEOs Rank Top Economies for Growth Opportunities
- The Mobile Ecosystem & Latin America's Economy
- Prospects and Challenges for the Global Economy: Interview with Tim Cooper from BMI Research
- How will the Fed reduce its balance sheet & and how will the ECB end QE? - 19 economic experts weigh in
- Gold: The Most Precious of Metals (Part 3)
- Thoughts on "unwinding" QE from Frances Coppola
- The Fed and ECB at a crossroads: Unwinding QE
- Spain: The economy that continues to silence the critics
- Latin America: The Most Unequal Region in the World
- The History of OPEC: Has it been a Success?
- FocusEconomics Announces 2017 Analyst Forecast Awards Winners
- Latin America’s rising unemployment bucks nearly decade long trend
- Escape from the Central Bank Trap by Daniel Lacalle
- China's economic rebalancing act: What to look out for in 2017
- Driving Growth in Latin America: Challenges & Priorities
- Is the Global Economy Rebalancing?
- Commodity exporters face challenging times
- Recent Global Events Facilitate Mercosur-Pacific Alliance
- 23 economic experts weigh in: Why is productivity growth so low?
- Mexico's outlook as Trump nears 100-day mark
- Interview with Oxford Economics Senior Economist on implications of the possible outcomes of the French Presidential Election
- The anxiety of the small saver in a world of negative interest rates
- Brexit negotiations. Between Uncertainty and Urgency
- An Economic History of the EU from El Blog Salmón
- Baby Boomin': Implications of high population growth in Latin America
- Survey of International Economists Predicts a Le Pen Defeat in French Elections, Says Macron has Best Economic Plan
- Spain in a global context: developed economy with some challenges
- How much is crime costing Latin America?
- Predictions & Estimates from Economist Daniel Lacalle
- What economy will the new Dutch government inherit?
- “The data is not a true reflection of reality in India” Interview with Société Générale India Economist
- 2017 & 2018 Economic Outlook for the Top Oil Producing Countries
- Which countries will have the highest and lowest inflation in 2017?
- What are the prospects for Emerging Economies in 2017?
- What to expect in Asia for 2017
- Top Economics & Finance Blogs of 2017
- Latam to Resume Moderate Growth in 2017 but Important Risks Plague Outlook
- 4 Key European Elections That Will Impact the Economy in 2017
- How are security concerns and political chaos affecting Turkey’s economy?
- Global growth to edge up in 2017
- Set to breach targets again? Debt and deficit outlooks for Southern European Eurozone countries in 2016 & 2017
- What does Donald Trump mean for the U.S. economy?
- How will emerging markets perform in 2017?
- The economic impact of a break in U.S.-Philippines ties
- Trump election: Base metals surge due to infrastructure plan
- 5 updates on the Venezuelan economic crisis
- Canada: When your neighbor’s house is on fire…
- Short-term pain before long-term gain? A look at French labor reform and economic growth
- Asia: Unremarkable growth & unfulfilled promises?
- How India's latest monsoon is affecting the economy
- Innovation in Latin America: Potential Goes Untapped Due to Weak Economic Conditions
- Russian economy update in wake of OPEC deal announcement
- The Wisdom of the Crowds and the Consensus Forecast
- Can the peso predict the U.S. election results?
- There's no end in sight to the Venezuela crisis
- A Look at the European Union Political Calendar
- Survey of international economists shows uncertainty surrounding elections damaging U.S. growth prospects
- FocusEconomics partners with leading online statistics provider Statista
- China: Recent postive economic data may be papering over the cracks
- Sub-Saharan Africa's 2016 & 2017 growth rates
- The Italian Dilemma: Weak banks pose risk to already faltering domestic demand
- How much money do migrants from Latin America send home?
- The U.S.' (Not So) Mysterious Case of the Missing Men
- What to expect from the G20 economies by 2020
- The Pain in Spain: Robust GDP growth cannot mask the persistent structural deficit
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
April 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
May 2015
April 2015
January 2015
December 2014
October 2014
September 2014
August 2014
July 2014
Blogroll
- Acting Man
- Alberto Forchielli
- Cyniconomics
- Don't worry, I'm an economist
- Econometrics Beat: Dave Giles' Blog
- Economic Principals
- Edward Hugh Blog
- Financial Services (About.com)
- Kunal's thoughts
- Marc to Market
- Miles Kimball
- Morss Global Finance
- Of Markets & Men
- Owen Zidar
- Punto de Vista Economico
- The Capital Spectator
- True Economics
