Daily Archives: July 25, 2011

Claire Jones

There are two questions worth asking about Vince Cable’s call for a second round of quantitative easing.

Was it appropriate? And, more to the point, was he right?

The first is easier to answer than the second. It was in no way appropriate for him to make the call. And, as this post on the FT’s Westminster blog notes, it is something of a reverse ferret.

The timing of the comments is cunning. Read more

Claire Jones

Coverage of Bank of Japan governor Masaaki Shirakawa’s speech earlier today focused on his warning on the dangers of a strong yen.

This is odd, as currency intervention is likely to come at the behest not of the Bank of Japan but of the finance ministry. Besides, as Mr Shirakawa notes elsewhere in the speech, Japanese manufacturers are hedged against a rising yen owing to their recent spate of acquisitions of overseas firms.

Of more interest is his warning that the impasse over the US debt ceiling and the eurozone debt crisis could trigger a rise in government bond yields the world over. Read more