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’The BIS still doesn’t like low interest rates
Those low interest rate u-Zirpers at the BIS are back.
The Bank for International Settlements, often known as the central banker’s bank, seems to share little in common with its low interest rate-advocating cousins in places like the UK and the US.
On the basics of how to tax banknotes
As documented by FT Alphaville, Willem Buiter has a thing for negative interest rates.
Most recently he’s been touting the idea again, this time in an opinion piece for the Wall Street Journal.
Leaving the economic case for negative interest rates aside for a minute,
Those low interest rate U-Zirpers at the BIS
In the battle between Austerians and Stimulants, the Bank for International Settlements (BIS) knows where it stands. In its latest annual report the central banks’ bank takes aim at everything from delayed fiscal adjustments to the extended period of low interest rates in places like the UK and US.
Talking US Treasuries
The results of the first of this week’s three auctions of US government debt are in.
Via RBS’ William O’Donnell:
3 Year Treasury Auction Results Auction
Date: 05/11/2010
Size: $38 Billion ($2B less than last month)
Maturity:
Do you notice the end of ZIRP?
There was not much reaction to the latest Federal Open Market Committee statement on Wednesday – and nor should there have been. After all, there’s been no real change in the language employed.
But examine this chart,
Slow road to recovery
The most obvious and immediate casualty of the Lehman collapse was thefall of Reserve Primary, and with it, the Prime Money Market – Money Market funds investing in commercial paper such as that issued by banks.
All hail the Zirp regime
The possibility of global zero per cent interest rates (Zirps) continues apace. What might that do to yield curves?
Simply change the way they work. From a Dresdner note out today:
While ZIRP might be an appropriate measure to face a recession and the strongly disinflationary forces,
Globally zirped
Zil. Zilch. Zirp.
Zirp is an acronym for zero per cent interest rates. It’s a term that’s starting to appear in mainstream bank notes, as well as financial blogs, and not just for localised countries,
The unthinkable has happened
Just two weeks after Deutsche Bank issued a note discussing the possibility of Japan-style quantitative easing in the US, it’s happening.
DB’s previous note was titled “The unthinkable.” This one is “Losing control of monetary policy.”