The challenges of central bank divergence By Martin Wolf

The US is years ahead of the EU in recovery and so at a different stage of the monetary policy cycle

Janet Yellen, chair of the U.S. Federal Reserve, speaks during her semiannual report on the economy to the Senate Banking Committee in Washington, D.C., U.S., on Thursday, July 16, 2015. Yellen said the Federal Reserve is "highly focused" on the risks of raising interest rates too early. Photographer: Drew Angerer/Bloomberg *** Local Caption *** Janet Yellen

Janet Yellen, Federal Reserve chair

The European Central Bank eased monetary policy last week, albeit not enough to please markets. But the US Federal Reserve is widely expected to raise short-term rates next week. This divergence between the most important central banks is likely to prove significant. Does this make sense for each in view of their own mandates? And what complications might such a divergence create for the world?

At first glance, the answer to the first question is straightforward: yes. The Fed and the ECB ought to be following different policies because their economies are in such widely different places.

Read the full story here.

HOME

Comments

Investment-Banking

Welcome to a comprehensive web site on investment banking careers. Investment Banks help companies and governments issue securities, help investors purchase securities, manage financial assets, trade securities and provide financial advice. The top investment banks including Goldman Sachs , JP Morgan and Morgan Stanley are said to be in the bulge bracket . Other investment banks are regionally oriented or situated in the middle market (e.g. Piper Jaffray ). Others are small, specialized firms called boutiques which might be oriented toward an industry vertical, bond-trading, M&A advisory, technical analysis or program trading. Firms have lots of different areas and groups within them. In most firms, there is sales and trading which works with owners of securities, investment banking which works with issuers of securities (firms and governments) and capital markets which goes in between the other two. Further Information on Inves...

Accountants with high-net-worth clients are well positioned to get significant remuneration for their practices and their efforts. The key is doing a deal that is not a conventional sale of an accounting practice

By Russ Alan Prince Home - For a number of reasons, there is increasing pressure on many smaller and mid-sized accounting firms to sell. Most of these deals have a similar arrangement where the multiple is based on the firm’s revenue – around one times annual earnings . In these acquisitions, the presumptions often include operational synergies with accompanying decreased costs and that the sellers will be able to transition their clients. In a great many cases, these premises are in error resulting in “bad feelings” and the sellers failing to obtain all the monies they expected. For example, there is regularly the belief that the sellers will grow their practices for a period of time even when they were apparently not able to do so before the sale. Moreover, many times the operational synergies do not occur. Read the full story here.

Coutts - WEALTH MANAGEMENT

Home - With a reputation for managing the financial needs of exceptional people , Coutts unique approach to wealth management centres on objective and pertinent advice, driven by intelligent and trusted relationships . Expert at navigating the complexities of today’s financial world , we ensure your wealth works for you. From planning for retirement or protecting and preserving wealth, Coutts wealth managers offer objective advice and solutions. Working seamlessly with private bankers and teams of specialists ensures suitable recommendations for every aspect of your wealth. High-touch investment expertise is the hallmark of investment management at Coutts. Our risk-based approach to portfolio construction ensures a breadth of precisely developed investment solutions in keeping with your full wealth picture. Read the full story here

Wealth Management

Search This Blog