ALL BLOG POSTS
This morning we got yet another disappointing number for the Chinese economy as the Purchasing Manager Index (PMI) dropped to 47.7 - the lowest level in 11 month. I have little doubt that the continued contraction in the Chinese manufacturing sector is due to the People's Bank of China's continued tightening of monetary conditions.
This is Scott Sumner ("A New View of The Great Recession"):
The big story of the week in the US has undoubtedly been the bankruptcy of the city of Detroit. I should stress that I have next to no insight into Detroit's fiscal situation. However, the bankruptcy is nonetheless a reminder of the risks moral hazard.
Only a couple of days ago I was complaining that the Turkish (and the Polish) central bank(s) have been intervening in the currency markets. My complains of the Turkish central bank's fear-of-floating and what seemed to be politically motivated monetary operations were then followed by the Brazilian central bank that hiked interest rates - officially to curb inflationary pressures, but what to me very much looked like an effort to prop up the Brazilian real.
This is from Bloomberg.com:
It is still vacation time for the Christensen family. So far we have been extremely lucky with the weather in Skåne in Southern Sweden. There has also been time for a bit of blogging. So here are a bit more random and disorganised thoughts on money and the world in general – actually not too much on money. So consider this yet another attempt to throw a curveball.
In my recent post about Keynes' "A Tract on Monetary Reform" I quoted Brad Delong for saying that Tract is the best monetarist book ever written. I also wrote that I disagreed with Brad on this.