Posts Tagged ‘interest rates’
For a complete list of Beginners articles, see the Financial Crisis for Beginners page. One of our regular readers and commenters (and a quite knowledgeable one at that) suggested that we provide an overview of interest rates and the relationship between the Federal Reserve and mortgage rates. So here goes.
Having woken up to the fact that inflation is not the thing to be worrying about, the UK, Eurozone (European Central Bank), and Switzerland all cut interest rates, the Bank of England by a completely unexpected 1.5 percentage points to 3.0%. Disappointingly, the ECB only cut rates from 3.75% to 3.25% (we earlier recommended an [...]
Global rate cuts: attacking the symptom? After yesterday’s move by the Fed into the commercial paper market, today’s big news is a global interest rate cut, including the Fed, the European Central Bank, and the Bank of England, among others. The effect of an interest rate cut should be to reduce borrowing costs across the [...]
I would like to express some sympathy for the current predicament of the European Central Bank (ECB). They will undoubtedly come in for a great deal of criticism in the weeks ahead, particularly following their refusal to move interest rates today – if our Baseline Scenario view continues to hold. But you have to keep [...]
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China and the U.S. Debt
January 8, 2009 in Commentary
Tags: China, deficit, interest rates
I’m warming up for a longish Beginners-style article on government debt, which will come out next week or so. In the meantime, the New York Times has an article today about China’s diminishing demand for U.S. dollar-denominated debt. Theoretically this could make it harder for the U.S. to borrow money and thereby push up the [...]