Category International
Eurozone Adjustment Asymmetry
Adjustment to resolve asymmetries should be symmetric. Both sides should adjust. But sometimes it isn't symmetric. One side may choose to adjust; but the other side is forced to adjust. Like under the Gold Standard. So if the Eurozone does break apart to resolve the asymmetry: I think it will not be through Germany choosing […]
Can the EU survive?
Just for once, this is not a question best left to the Poli Sci. Because the main forces will be money/macro. For nearly two years now, I've been worried that one or more of the Eurozone countries might do an Argentina. I've been asking whether the Eurozone could survive. I think it's time to change […]
Oil prices, the Canadian dollar and the kink at parity
The Canadian dollar has been bouncing around parity with the US dollar recently, and the Fed's adoption of another round of quantitative easing plus the relaxing of the Chinese government's tightening policies has people (including me) thinking that USD-denominated commodity prices will rise, and with it the Canadian dollar. But will it? The last time […]
Currency wars and forced dissaving
The Fed is the loan placement officer for the world's central banks. The US government is the Fed's borrower of last resort. The forced loans can be called in at any time the lender wishes. People are different; that's why they trade. Sometimes that trade will take place between people who live in the same […]
Canadian monetary policy if half the world turns Japanese?
The latest Statistics Canada Labour Force Survey confirms the impression that the Canadian economy is recovering well. Inflation is still a little below the 2% target, but should rise as the recovery continues. The Bank of Canada's overnight rate target is at 0.50%, which is much lower than normal, and is clearly negative in real […]
The eurozone pain is mainly in Spain
In a previous post, I charted the employment losses for the G7 countries and noted that while the US was still bouncing along the trough of of a deep recession, the other countries were less badly-hit. But there was an important country missing from that graph – and it wouldn't have been included in a […]
One of these G7 labour markets is not like the others
The G7 are meeting in Huntsville this weekend, about an hour's drive up Highway 11 from my home town. There's been a certain amount of pre-summit jockeying about what would be on the agenda, but it's hard to see how there's going to be a consensus on the issue of the fiscal 'exit strategy' back […]
Connecting the eurozone crisis to the Canadian economy
This looks tricky. We should perhaps start with Tim Duy's suggestion that the eurozone crisis could be a net positive for the US: The European crisis, by keeping US interest rates in check and oil prices low, may do more to help the US recovery than hurt it. It makes sense to think of lower […]
What is a “reserve currency” anyway?
I just realised I don't really know; that's why I'm asking. With the Eurozone troubles, the US dollar has been rising against the Euro. That's not so surprising. But the US dollar is rising not just against the Euro; it seems to be rising against other currencies as well, like the Canadian dollar. And gold […]
L’Europe et l’alchimie monétaire
Cet article nous est envoyé par Guillaume Nolin, qui participe régulièrement ici sur WCI. Les événements survenus en Grèce au cours des derniers jours nous forcent à nous questionner sur la précarité de notre situation économique. L’image d’une Grèce prodigue, sorte de cigale en préretraite manifestant violemment pour conserver des acquis sociaux illusoires, est certes […]
Worthwhile Canadian Initiative 
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