Monetary Medicine
07/05/2012 | | Bank of China, Bank of England, ECB, European Central Bank, Fiscal Policy, Monetary Policy, Stimulus
Things can’t possibly be good when yesterday, in less than an hour, the ECB, The Bank of China, and The Bank of England all offered monetary medicine to the weakening global economy. Problem is, easier monetary policy won’t help much. What’s needed is stimulative fiscal policy. Separately, while US labor market conditions are worse than in Q1, they’re not terrible. Tomorrow’s employment report will show less than 125,000 new jobs.