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15/58
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Introduction
The global economy is in turmoil and central banks from the breath and width of the globe are struggling to spur economic growth in 2016. They have deployed most the weapons in their arsenal in a desperate attempt to spark economic growth, including negative interest rates and massive stimulus packages but the much need growth remains elusive. Consequently, central banks are looking for new ways to spark economic growth, and the use of unconventional means such as "helicopter money," have become topical issues.
This article seeks to demystify the concept of helicopter money, making it clearer and easier to understand to the ordinary person.

What is Helicopter Money?

Helicopter money is a reference to an idea made popular by the American economist Milton Friedman in 1969 in his paper “The Optimum Quantity of Money.”
The basic principle is that if a central bank wants to raise inflation and output in an economy that is running substantially below potential or targeted levels, one of the most effective tools would be simply to give everyone direct money transfers. In theory, people would see this as a permanent one-off expansion of the amount of money in circulat…
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Natalia_Kisenko avatar

well done!

olya2517 avatar
olya2517 23 Sep.

very good

Armands avatar
Armands 25 Sep.

Instead of giving more money directly to everyone, they give it to selected ones!

VictoriaVika avatar

great article!

Sharpshooter avatar

Точно. Так и вливают они обычно)

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20/38
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Introduction


The European Central bank (ECB) Governing Council meeting on the 8th of May 2014 made a decision to maintain the benchmark interest rate at 0.25% and the prevailing monetary policy regime. However in the question and answer segment the ECB president Mario Draghi said, “I would say that the Governing Council is comfortable with acting next time but first we want to see the staff projections” setting the markets alight. Following these remarks, the German 10-year bund yield, fell 2 basis points to 1.457%, the Stoxx Europe 600 index went from an intra-day low of 335.52 to a 0.4% gain at 337.59, Germany’s DAX 30 index climbed 0.4% to 9,556.88 and the EURUSD dropped from a daily high of 1.3990 to close the day at 1.3840. The stage is now set for an exciting June 5 2014 meeting.
This article seeks to critically analyze the state of the euro area economy and the tools available to the ECB to deal with the imminent challenges.
Gross Domestic Product (GDP)
The euro area emerged from recession in the second quarter of 2013, with a GDP growth rate of 0.3%. Since then moderate growth rates of 0.1% and 0.3% have been posted in the third and fourth quarter of 2013. Below is how…
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Loughney81 avatar

Well done!!

Ann7293 avatar
Ann7293 16 May

Здорово!Очень наглядно показано!

DumbAsArock avatar

Well written.

alifari avatar
alifari 17 May

Very useful article +

Ifuga avatar
Ifuga 17 May

Best of luck!

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13/30
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Introduction
On the 13th of September 2012 the United States of America's Federal Reserve bank (Fed) announced a third round of quantitative easing (QE3). Under QE3 the Fed was to launch a USD 40 billion per month, open ended bond purchasing program of agency mortgage-backed securities. On December 12 2012, the Federal Open Market Committee (FOMC) announced an increase of USD 45 billion to the open ended purchases bringing the total to USD 85 billion worth of stimulus. The EURUSD had opened at 1.29 on the 13thof September 2013 and following the announcement a bullish trend was unleashed. Below is the hourly chart of the EURUSD during that period.
Having witnessed the signs of economic growth, the Federal Reserve announced its intention to taper the QE3 program contingent upon continued positive economic data on 19 June 2013. Tapering is a gradual winding down of central bank activities used to improve the conditions for economic growth, in this case QE3. Below is an comical illustration of tapering.
Following the taper announcement in June 2012, stock prices tumbled and the EURUSD dropped to 1.3000 at the end of June 2013 from 1.3393 on the 19th of June 2013. Below is th…
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llolor avatar
llolor 11 Apr.

Thank you all

Armands avatar
Armands 14 Apr.

Oh, I would never trust those guys :( Though article is interesting :)

Olga18375 avatar
Olga18375 16 Apr.

Very interesting article!

Faster avatar
Faster 22 Apr.

intersting article

Elani avatar
Elani 29 Apr.

I also agree that it was the intention first in June and the action later in December!

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13/46
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I felt the need to cover this subject as well before the year end, because in my humble opinion it will be the dominant market driven theme of 2014, and if you're an investor or an active trader you want to make sure you understand the market implications of such a big event, because it will dictate the market tone for the next year. Even if you're only a technical analyst trader there is no way you haven't heard at least one time about "Taper", so have you ever asked yourself what does it mean and how it will affect your trading operations? The sole purpose of this article will be to answer precisely to that question.
The word tapering in financial terms is increasingly being used to refer to the anticipated reduction of the Federal Reserve's quantitative easing(QE), or bond buying program. The current Federal Reserve quantitative easing (QE3) accounts for purchases amounting to $85 billion in Treasuries and Mortgage Backed Securities (MBS) per month, with the main scope lower interest rates and therefore bolster growth.
  • What is Quantitative Easing?
Since the global financial crisis of 2007–2008 the FED has begin using new type of market policy like Quantitative Easing to try to
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Daytrader21 avatar

Update: For the December meeting the market expectation for a taper where considerable low, however FED is shocking the market again with a taper decision. If you try to make a reasoning of WHY now tapering? my take is that this was last appearance for Bernanke and his last change to make a good impression in front of the public, and it was also a good strategy for the Fed because if something would have gone terribly wrong, Yellen the New Chairman could have promise that she will do changes and fix the problem, and this would certainly send confidence signals to market participants (2)

Daytrader21 avatar

Update: As expected market reaction was in both direction and we saw a big whipsaw as volatility was very high during the news release and also during the Q&A session. Although Fed decided to do a small tapering and only cutting back their stimulus programs by a minor 10B, Ben Bernanke has said during the press conference that any further cut in QE is data depending and "end of QE certainly won't be at mid-year" suggesting that it will take longer before they will end the QE programme for good. And this can easily extend through the whole 2014 year and beyond, but that remains to be seen.(3)

Metal_Mind avatar
Metal_Mind 19 Dec.

Thanks bro.....I owe my 210 pips on gbp /jpy..hope to get 2000 pips until i closed it ... to your article. I sow the third picture of what was the reaction of no tapering on euro usd,,,,whatch it on gbp usd and correlated with gbpjpy because beiing a cross is more volatile and i kinda anticipated this move. Thanks again.

FXdream avatar
FXdream 20 Dec.

nice++++

ilonalt avatar
ilonalt 26 Dec.

well done!

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40/53
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Inflation Deflation and Quantitative easingWell, honestly I’m not so sure
picking this topic, but just lets go, it would be nice to discuss this topic
with others peoples.
I will start this topic by the definition
of inflation,
So, what is inflation?
Wikipedia says that inflation is a rise in the general level of prices of goods and services in an economy over a period of time.
This is means that during a period of time,
the price for goods and services go higher than before. For example if you buy
a cup cake about $ 1  in 2002 and than
ten years later that cup cake become $ 2 , that’s means during this ten year
there is inflation for about 100%. (in reality  inflation could be calculate in some formulas,
but the common one  is by using  Consumer Price Index, if you want to know how
to calculate inflation just find it in Google, so let’s get move)
 So, what
cause inflation? What drive price goes higher?
That is a huge question, inflation could be
triggered by so many factors, it could be the money supply, could be increasing
in  demand of goods and services, no
supply of goods and services and some others factor.
I will talk about the demand first, as we
know that if supply for a g…
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marius24 avatar
marius24 22 Mar.

i study a lot about inflation and very interesting your study

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