economics

Follow the (Broad) Money

There are two primary ways to increase the broad money supply significantly.

The first method is that banks have to lend more, which increases the “money multiplier”, or in other words makes the broad money supply many times larger than the base money supply. Inversely, if debts are paid off, that destroys broad money.

The

The stock market commonly responds by downgrading the value of the acquiring firm, because experience has shown that efforts to integrate large firms fail more often than they succeed.

The harder we have to work to get something, the more we value it.

However, debt-to-GDP has limitations that are often overlooked. While much attention focuses on the ‘debt’ side of the equation, the ‘GDP’ component can also distort the picture. GDP growth can arise from genuine factors like productivity gains or an expanding labor force, but it can also be driven by large monetized deficits. These deficits can

points to imbalances between production and consumption in the major economies as the primary source of monetary instability.

Crude oil and natural gas prices have historically moved in tandem as a result of the linkage between the two commodities on the supply and demand sides. But their price relationship reached an inflection point after 2008 and they have since decoupled. The article discusses how the price relationship between crude oil and natural gas has evolved

Scale of support: China’s government directs about 4 percent of its GDP each year toward industrial policies such as subsidies, tax breaks, low-interest loans, and cheap land.

According to an investigation by The Wall Street Journal, in July, the total amount of off-the-book debts held by local governments across China now stands at between $7 trillion and $11 trillion, with as much as $800 billion at risk of default.