ecb

Monetary Policy Doesn’t Follow GDP

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Reading Time: 5 minutes The Fed funds rate is a hotly debated topic because it’s the main policy tool the Fed uses. There is economic data which can be interpreted to support every argument. Furthermore, after the metrics are taken into account, the goals are subject to interpretation. Just because the core inflation rate…CONTINUE READING

ECB Unwind Causes Monetary Conditions To Tighten

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Reading Time: 5 minutes In January, the ECB tapered its bond buying from €60 billion per month to €30 billion per month. Equally as important, the central bank is expected to stop its bond buying completely by September 2018. European economic growth has accelerated recently, but it’s unclear how much the economy was helped…CONTINUE READING

ECB Won’t Be Able To Help Italy In 2018

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Reading Time: 5 minutes The Recent Past And Future ECB Policy In 2016 when the economy looked like it could fall into a recession, the leading central bankers met and coordinated a massive stimulus effort. Since then the ECB has been on a massive buying binge. From April 2016 to March 2017, the ECB…CONTINUE READING

Are We Returning To Normalcy Now?

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Reading Time: 6 minutes There was a time where people joked about Twitter being a frivolous website that did not provide any valuable information nor insight for investors. That’s not the case anymore as financial Twitter (FinTwit) has riveting discussions if you follow the correct people. However, there are often false narratives that pass…CONTINUE READING

Consequences For Europe During ECB QE Reduction

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Reading Time: 5 minutes In this article we’ll look at the ECB’s monetary policy and the macroeconomic metrics in Europe. The biggest decision in the queue is what the ECB does with its bond buying program. The decision on the size and duration of Quantitative Easing in 2018 will be announced on October 26th.…CONTINUE READING

Is Quantitative Tightening The End Of The Euro?

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Reading Time: 5 minutes “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” – Mario Draghi These were the famous words spoken by the president of the European central bank in 2012 during a period where uncertainty and high volatility…CONTINUE READING

ECB Bond Purchase Details Revealed

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Reading Time: 5 minutes The Fed’s quantitative easing program is relatively plain vanilla compared to what other central banks are doing. That’s a remarkable statement as expanding its balance sheet is a new phenomenon. If you would have discussed the idea of the Fed’s balance sheet being $4.5 trillion, filled with treasuries and mortgage…CONTINUE READING

Is A Central Bank Balance Sheet Unwind Possible?

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Reading Time: 5 minutes The 2nd half of 2017 and 2018 will be pivotal moments for monetary policy. Global central banks have bought assets to the tune of trillions of dollars in the past few years, known as quantitative easing. Central bankers are providing guidance for future policy which entails shrinking their balance sheets…CONTINUE READING

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