Month: December 2011

Death to Pennies

Inflation erodes the value of real currency ECONOMISTS tend to favour a small positive rate of inflation, and there are 4 reasons why this makes sense: Labour market flexibility: inflation allows relative real wages to adjust even if nominal wages do not move. A company that tries to pay workers less money is likely to meet […]

Tags consulting, deflation, Economics, inflation, Labour market flexibility, liquidity trap, Management Consulting, physical capital

Economics

The Fed is Europe’s new dealer

Post author By Tom Spencer
Post date December 2, 2011
No Comments on The Fed is Europe’s new dealer

Europe may not go to rehab before it is too late THE US Federal Reserve took steps yesterday to make it easier for European banks to borrow and lend dollars. The Fed is now providing such cheap money to Europe that the European Central Bank can borrow from the Fed at lower interest rates than American banks. The […]

Tags Brussels, cheap credit, consulting, December 8, December 9, Economics, Europe, Europe debt crisis, Federal Reserve, Management Consulting, rehab, sovereign default