IMF: An Overview of Macroprudential Policy Tools

From IMF: “An Overview of Macroprudential Policy Tools”:

Macroprudential policies – caps on loan to value ratios, limits on credit growth and other balance sheets restrictions, (countercyclical) capital and reserve requirements and surcharges, and Pigouvian levies – have become part of the policy paradigm in emerging markets and advanced countries alike.

A long-standing puzzle in international finance is the durability of the dollar’s share of foreign exchange reserves – which remains above 60%, while the weight of the US economy in global output has fallen to less than a quarter. We argue that the dollar’s role may reflect instead the share of global output produced in countries with relatively stable dollar exchange rates – the “dollar zone”. If a currency varies less against the dollar than against other major currencies, then a reserve portfolio with a substantial dollar share poses less risk when returns are measured in domestic currency. Time series and cross-sectional evidence supports the link between currency movements and the currency composition of reserves.

Source: IMF: “An Overview of Macroprudential Policy Tools”

Category: Economy, Think Tank

New Evidence: US Government Intentionally Lied Us Into Iraq War

Alleged Meeting Between 9/11 Hijacker and Iraqi Official Was Debunked by U.S. Intelligence Agencies Before It Was Trumpeted As War Justification … U.S. Pressured Czech Government to Lie There is extensive evidence that the U.S. government intentionally lied us into the Iraq war. Here’s a quick refresher: Pulitzer prize-winning journalist Ron Suskind reported that the…Read More

Category: Think Tank, War/Defense

Oil As A Weapon

Art Cashin of UBS shares the following observations from Don Coxe this past week. I thought it was interesting, and wanted to pass it along: “The incomparable Don Coxe, one of the very best observers and analysts of global commodities recently wrote this: Most observers thought the Organization of Petroleum Exporting Countries (OPEC) would cut…Read More

Category: Energy, War/Defense

Barron’s: “My Favorite Bloggers”

  Some kind words about your humble scribe in this week’s Barron’s: “But investors also need a top-down perspective on global economics and market mechanics from those with access to the powerful and/or influential. Two of my favorites are Nouriel Roubini and Barry Ritholtz, both seasoned market observers, well schooled in accounting, statistics, and other…Read More

Category: Media, Weblogs

10 Sunday Reads

My morning afternoon train reads: • This Week Was A Stark Reminder Of How Fast Good Stock Markets Can Turn Bad (Business Insider) but see It’s the waiting part that’s hard (Above the Market) • ‘My seven biggest investment regrets’ (Telegraph) • 122 Things Everyone Should Know About Investing and the Economy (Fool) • Some Cheerful Signs…Read More

Category: Financial Press

Mad Max: Fury Road

Mad Max: Fury Road – Official Theatrical Teaser Trailer

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Category: Film, Weekend

$100,000 Says My Portfolio Will Beat Tony Robbins’

Motivational speaker Anthony Robbins has a new book on investing, “Money: Master the Game.” It is his first book in two decades, and he has been everywhere, flogging it directly onto the best-seller list. The good news is that the book contains snippets of conversations with some of the world’s greatest investors. The bad news…Read More

Category: Apprenticed Investor, Asset Allocation

MiB: William Grueskin

In the latest “Masters in Business” podcast, I speak with William Grueskin, formerly Managing Editor of the Wall Street Journal online, and Academic Dean of Columbia School of Journalism. From his unique vantage point, Grueskin discusses how the business of journalism has changed since the advent of internet and new digital technologies. In our conversation, we discuss…Read More

Category: Podcast

10 Weekend Reads

Pour yourself some Arabica coffee, settle into your favorite easy chair, and sashay up to our longer form weekend reads: • Why America’s middle class is lost: They took America to the moon. Then something went horribly wrong. (Washington Post) • Hedge Fund Manager Finds Stalking Lions With Camera Harder Than Tracking Markets (Bloomberg) • Deadliest US…Read More

Category: Financial Press

Succinct Summation of Week’s Events 12.12.14

Succinct Summations week ending December 12, 2014   Positives: 1. Average gasoline prices fell to $2.60, the lowest levels since 2009, as Crude Oil continues to crash. 2. U.S. retail sales rose 0.6% m/o/m, better then he 0.5% expected rise. 3. Consumer confidence came in at 93.88, which was the biggest beat relative to expectations since…Read More

Category: Markets