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Markets brace for ECB stress tests
FT
European financials gain in run-up to results
Related: Leaked document shows 25 banks failed ECB safety tests
James Titcomb / Telegraph
Twenty-five of the 130 banks have failed the comprehensive assessment of their financial health, according to reports
 
Pain Begins to Spread as China's Home Prices Fall for Fifth Straight Month
Business Week
Cities relax or abandon purchasing restrictions in a bid to avoid more serious downturn
Related: China's Imperial President
CFR
Xi Jinping's reforms are designed to produce a corruption-free, politically cohesive, and economically powerful one-party state with global reach: a Singapore on steroids. But there is no guarantee the reforms will be as transformative as the Chinese leader hopes, says Elizabeth Economy.
 
Putin tells political experts U.S. is undermining global stability
Japan Times
President Vladimir Putin said Friday that the world is becoming an increasingly dangerous place because of U.S. attempts to enforce its will on other countries and that his nation will not comply. In an emotional speech before international political experts, Putin unleashed scathing criticism on the United States for what ...
Related: Russia’s Halfway House
Maxim Trudolyubov / NY Times
The few legal protections Russians still possess are becoming even more limited.
Related: Putin Says Don't Mess With Mother Russia
Marc Champion / Bloomberg Views
If President Vladimir Putin is Russia, as a senior Kremlin official said this week, then this country is angry, humiliated and suffering from an almost
 
IMF introduces floor on interest rates
FT
Aggressive monetary easing threatened to turn it negative
 
Today's Deficit is not the Problem
David Wessel / Brookings
There are reasons to be relaxed about the federal deficit. But... When the books closed on fiscal year 2014 on Sept. 30, revenues were up 9% and spending was up just 1%. Even Medicare grew slowly. The deficit, the gap between income and outlays, was 2.8% measured against the gross ...
 
David Brooks' Great Adventures in Fantasy Land
CEPR
David Brooks has a tough job. He is supposed to present an intellectually respectable case for a political party that denies human caused global warming and has questions about evolution and the shape of the earth. This is why he must depart from the truth in laying out the path ...
Expand sublinks   Also:  Daily Kos
 
American-Made Financial Repression
Andrew Sheng, et al. / Project Syndicate
The late economist Ronald McKinnon argued that China and the US, by working together, could alleviate financial repression and enhance global monetary stability. Unfortunately, this advice is not popular among US economists and policymakers, who prefer the short-term political advantages afforded to them by free-market rhetoric.
 
Accusations fly as Brazil poll nears
Thalita Carrico / Beyond BRICs
Little more than a day before the second and final vote in Brazil's presidential election on Sunday, incumbent president Dilma Rousseff has opened up a lead of as much as eight percentage points over rival Aécio Neves of the pro-business PSDB in the major polls. How did she do it? ...
Related: Brazil's election: 'Ghosts' versus 'Monsters'
U.S. News
RIO DE JANEIRO (AP) - Brazilian voters electing a new president this weekend are being asked to decide what scares them least: the incumbent's warnings about the "ghosts of the past," or her challenger's charges about the "monsters of the present."
Related: Addressing Inequality Will Be a Long Struggle in Brazil
CFR
Ahead of the presidential election on Sunday, Julia Sweig reflects in the "Room For Debate" section of the New York Times on the challenges ahead as Brazil seeks to confront its persistent inequality.
 
George Osborne hails UK GDP figures
Telegraph
Chancellor George Osborne has welcomed the news that UK economy grew by 0.7pc during the third quarter of this year
Expand sublinks   Also:  BBC | BBC | The Times | Guardian | FT | Guardian | WSJ
 
Productivity, Recessions & New Levels of Productive Capacity
Angry Bear
There has been a conversation in the comments section of a previous post on Productivity's role as a cause of recession. The issue is whether increasing productivity causes recessions, as opposed to tight money policy or something else. Truly, a recession is caused by a blend of factors, including monetary ...
 
Monetary policy and inequality in the US
VoxEU
There are several conflicting channels through which monetary policy could affect the distribution of wealth, income, and consumption. This column argues that contractionary monetary policy raised inequality in the US, while expansionary monetary policy lowered it. This evidence stresses the need for monetary policy models that take into account heterogeneity ...
 
Merrill Lynch: FOMC Preview
Bill McBride / Calculated Risk
From Merrill Lynch: The October FOMC meeting is likely to see the end of QE3 buying, as the Fed tapers the final $15bn in asset purchases. ... Tapering has been largely contingent on an improving labor market, and that has generally continued. The FOMC also has indicated multiple times that ...
Expand sublinks   Also:  FX Street | OANDA | Mish | Leo Kolivakis | OANDA
Related: The problem with procyclical inflation
Scott Sumner / Money Illusion
Here's Charles Evans in the WSJ: "We've averaged well under that 2% mark for the past six-and-a-half years," Mr. Evans said. "With a symmetric inflation target, one could imagine moderately above-target inflation for a limited time as simply the flip side of our recent inflation experience-and hardly an event that ...
 
Continent's Drift: The Conflict Between Germany and the E.C.B. That Threatens Europe
Neil Irwin / NY Times
Unlike Germany, Mario Draghi and the European Central Bank see a long deflationary period as the biggest danger for Europe.
 
French unemployment hits new record high
France 24
After a slight improvement in August, the number of jobless in France once again increased in September, reaching a new record high of 3.43 million unemployed, government figures revealed Friday.
Expand sublinks   Also:  WSJ
Related: French Unemployed Hits Record High, Hollande Demands EU Budget "Must Be Adapted"
Tyler Durden / Zero Hedge
France's President Francois Hollande states confidently that "everyone should respeoct treaties," then 'Junckers' it with this stunningly hypocritical bullshit, "budget rules must be adapted" to support growth and France "has done what it has to do" on its deficit... one glance at the following chart suggests that Hollande has done ...
 
Love Your Country, Reform Its Tax Code
Robert J. Portman / Bloomberg Views
Even with new majorities in Congress, a bipartisan remaking of the tax code is possible.
Expand sublinks   Also:  TaxProf Blog
 
Renzi to thrash out budget compromise with EC
Gazzetta Del Sud
Rome, October 24 - Premier Matteo Renzi said Friday in Brussels that debate at the European Union summit that just ended was "tough and intense, as always". There are "no particular worries or concerns" over Italy's 2015 budget, the premier added. "We will close what needs to be cl...
 
Is this Abenomics' moment of capitulation?
IFR
Shinzo Abe's eponymous economic growth plan could be on its last legs.
Expand sublinks   Also:  Japan Times
Related: Yen Fall Hits Japan's China Firms
WSJ
The yen's sharp decline against the yuan is clobbering some Japanese companies operating in China, forcing them to rethink businesses there.
 
5 Ways Falling Oil Prices Are Helping the Economic Numbers
Kathleen Madigan / WSJ Economics
Dropping energy prices-a big positive for the economy-are filtering through recent economic data. Here are five ways gasoline prices have been a factor in recent reports.
Related: Saudis Vs Oil Markets: Who's Playing Whom?
Gaurav Sharma, Contributor / Forbes
Oil prices have fallen by over 20% in the last couple of months. Brent is currently trading $30 below its summer spike to $115 per barrel and many are left wondering what the Saudis are playing at. Based on conventional wisdom, past moves and motives, Saudi Arabia should lower production ...
 
No decisions yet on Greek bailout, says Samaras
Kathimerini
The European Union leaders' summit concluded in Brussels on Friday without any concrete decisions having been taken about Greece's economic future despite Prime Minister Antonis Samaras holding a series with top officials. "Nothing has been decided yet," ... ...
 
India to explore food, energy opportunities with Latin America
Financial Express
India has decided to expand its engagement with the Latin America and Caribbean (LAC) countries to give fillip to trade and investment
Related: India's finance minister favors interest rate cut: paper
Reuters
NEW DELHI (Reuters) - India's Finance Minister Arun Jaitley favors a cut in interest rates to trigger demand in the construction sector, a newspaper report said on Saturday, but the central bank has...
 
'External forces' claim diminishes the Hong Kong government
South China Morning Post
There has much talk about the Umbrella Movement damaging Hong Kong's international reputation. But the truth is the movement plays rather well overseas.
 
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David Brooks' Great Adventures in Fantasy Land
CEPR
Open thread for night owls: David Brooks is absolutely clueless on still another subject
Daily Kos
IMF introduces floor on interest rates
FT
Putin tells political experts U.S. is undermining global stability
Japan Times
No decisions yet on Greek bailout, says Samaras
Kathimerini
'External forces' claim diminishes the Hong Kong government
South China Morning Post
India to explore food, energy opportunities with Latin America
Financial Express
Accusations fly as Brazil poll nears
Beyond BRICs
French unemployment hits new record high
France 24
Monetary policy and inequality in the US
VoxEU
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
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