Many stock markets around the world are at or near their highest levels ever, so perhaps a correction is on the cards. The asset class that benefits most in this environment is fixed income.» Read More
When European Union (EU) leaders provided a bailout for Greece last May, they no doubt “did the right thing.” But in the process, they not only broke the spirit of the EU Treaty, but also set themselves up for the future challenge of reining in moral hazard.
Clearing house LCH Clearnet doubled its margin requirement for Irish government bonds Wednesday, reacting to fears over uncertainty regarding the country's debt issues, which pushed yields on Irish debt higher.
When the Federal Reserve announced last week that it would buy $600 billion in Treasury bonds to help bolster the economy, it quickly came under attack from Germany, Brazil and China. But the Fed’s plans earned a hearty endorsement from at least one foreign trade partner — India. The NYT reports.
The US Congress should focus on a medium-term plan to cut government debt to dispel fears about the world's biggest economy, Olivier Blanchard, IMF chief economist, told CNBC Thursday.
For the first time in living memory, government spending has become a major issue. In the past, Republicans would run against taxes and Democrats against spending cuts, with neither party really running hard against spending. This had the predictable result of lowering taxes, raising spending, and inflating the public debt.
With Greece hitting its marks on the financial bailout earlier this year, it is now taking steps to streamline business and investment processes to promote growth, the country’s finance minister, George Papaconstantinou, told CNBC Thursday.
Growth in advanced economies has hit a road bump and using quantitative easing (QE) measures will not help them to speed up growth, said Olivier Blanchard, chief economist of the International Monetary Fund.
US Treasury Secretary Timothy Geithner will call on emerging nations to show more flexibility on currencies in exchange for a greater say in international financial institutions, a Treasury official told CNBC Wednesday.
The head of the International Monetary Fund has warned that governments are risking a currency war if they try to use exchange rates to solve domestic problems, reports the Financial Times.
The international community has postponed bank stress tests for Greece to give the country breathing space as Athens prepares to test the success of its European roadshow last week by raising more money in the capital markets.
Treasury Secretary Timothy F. Geithner, in separate hearings before House and Senate panels, plans to acknowledge on Thursday that China has kept the value of its currency, the renminbi, artificially low to help its exports and has largely failed to improve the situation as it promised to do in June.
The suggestion, which experts say will be strongly opposed by the US, addresses a politically highly symbolic dispute about voting power and seats on the fund’s executive board. The FT reports.
There is unlikely to be a double-dip recession, while the fact that stimulus spending was helpful in containing the crisis is undisputable, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), told CNBC Monday.
The world economy is recovering moderately but still faces challenges such as the need for medium-term fiscal consolidation, the IMF's First Managing Director, John Lipsky, said on Sunday.
The world’s most developed economies, which have been racking up spending since the mid-1960s, face record levels of debt as a result of the 2008-9 financial crisis and have little room for maneuver, the International Monetary Fund warned on Wednesday. The New York Times reports.
While immediate market tensions have mostly passed, the sovereign debt crisis continues to be a challenge in Europe and fiscal consolidation is an important “long-term project,” said Axel Weber, president of the Deutsche Bundesbank.
It’s a week of dueling predictions for the Chinese economy—in a debate that pits the International Monetary Fund against one of the most successful investors in the hedge fund sector.
Friday at noon, New York time, 91 banks in Europe will reveal how strong they would be if the region went back into recession over the next two years and the sovereign debt they hold plunged in value.
Whereas critics of the US bank stress tests complained that there were too many details, the concern about European tests is that there are too few.
A third straight day of gains had the bulls claiming victory over the bears. But how long will it last?