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Bonds, Yields and Inflation: Why The Recent Bond Market Volatility Matters

March 23, 2021March 22, 2021 by Pinidu Chandrasekera

In recent weeks, the prices of American and Australian government bonds have plummeted. What does all this mean for the wider economy? Join Pinidu as he explores the implications of this recent market episode on growing inflation fears, interest rates, and much more.

Explaining the recent tumble in US stocks

April 20, 2018April 20, 2018 by Nathan McClelland

US equities have had a shaky start to 2018. Nathan McClelland explores some of the possible reasons for this volatility.

The EU QE experience so far

February 21, 2016July 27, 2015 by Alex Woodruff

In March 2015 the EU started its QE program. For success to be achieved it must navigate the secondary bond market, secrecy in bond purchases, and Greece.

The US Quantitative Easing experience

February 20, 2016May 27, 2015 by Alex Woodruff

Alex Woodruff wonders are US central bankers the most optimistic economists around? If not, why did they turn to QE and did it pay off?

The story of the real Australian economy: Part 3 – The RBA’s toolkit

February 20, 2016May 26, 2015 by Benjamin Wee

In Part 3 of ‘The Story of the Real Australian Economy’, Ben looks at monetary policy setting and the dilemma faced by the Reserve Bank of Australia in light of the economy’s structural problems.

The early Japanese QE experience

February 20, 2016April 26, 2015 by Alex Woodruff

QE is the new kid on the block of monetary policy but the verdict is out on its efficacy. As more central banks turn to QE to ease zero interest rate woes, Alex Woodruff wonders how this practice hit the mainstream.

Fear of deflation re-ignites in the Eurozone

October 14, 2019April 22, 2014 by ESSA Writers

Marco Madzzar analyses the economics underlying the re-emerging fears of deflation in the Eurozone

The Fall of the Australian Dollar

February 16, 2016May 30, 2013 by ESSA Writers

Underperforming growth in China, improving economic conditions in the US, and the RBA’s recently announced cut in the cash rate to a record low of 2.75% have forced downward pressure on the Australian dollar – culminating in a loss of nearly 8% in value against the USD since mid-April. Crashing from its peak of $US1.10 in July 2011, the AUD has reached an 11 month low, with many analysts warning investors to brace themselves for further deterioration.

The World this week with ESSA

February 16, 2016October 7, 2012 by ESSA Publications

Hand picked selection of economics content from around the web. This week: Europe, US election coverage, the RBA’s monetary policy and the cost of free range chickens. ESSA, 7 October 2012 World Economy Europe Greek Prime Minister Warns of Societal Collapse Like Weimar Germany; Citizens Storm Defense Ministry; – Global Economic Analysis Greece is politically …

Negative Interest rates: They don’t exist…Or do they? Examining the strange case of the Swiss

February 16, 2016March 11, 2012 by Hungy Ye

It’s commonly assumed that interest rates of any sort of debt has to be positive, because it just doesn’t make sense otherwise: why would you pay someone to hold on to your money for you when you can do the same by putting it in the bank and earn interest? If you don’t trust the bank, you could still withdraw it in cash and put it under the mattress for safekeeping so logically they shouldn’t exist. But if you go to your preferred financial press and do a quick search for current rates on Swiss 2 year bonds (on Bloomberg) for example, at the time of writing the yields on these things are negative. But we just said that they don’t make sense…?