A test of nerve.

Money Observer – special 30th anniversary edition, 1st October 2009 We know what went wrong in financial markets, but opinion is divided as to whether the response has been adequate. Andrew Smithers argues that only courageous political action will prevent a...

A New Era For Japan?

Nikkei Veritas – Market Eye column, 29th September 2009 There is a reasonable chance that the election of the new DJP government is a signal of a major change in the economy as well as in politics. I have regularly pointed out in previous articles, that the...

Central Banking – Beyond Inflation Targeting.

Beyond Inflation Targeting – Policy Exchange, 25th September 2009 Our current troubles are the result of inept central banking arising from two errors, for which the Federal Reserve was the most prominent but by no means the only proponent.(2) The first was to...

No reason for governments to encourage folly.

Financial Times (Letters) , 25th September 2009 Sir, In your editorial, “G20 must not let unity unravel” (September 24), you argue that banks need a great deal more equity capital and quote the International Monetary Funds’s estimate of $1,700bn. You...

The Return of Deflation.

Nikkei Veritas – Market Eye column, 17th July 2009 In June consumer prices in Tokyo were 1.5% below the level of a year before. This news was generally greeted with concern by the world’s financial press. Although such worries are usually reasonable, in today’s...