Two tales of credit woe

The monetary data from Japan and Britain suggest that there is core weakness in the underlying economy.

Where have the world’s consumers gone?

Low wage growth may morph from an inexplicable aspect of the current economic setting to a driving force behind a credit crunch and broad contraction of aggregate demand. 

Unvalidated PMIs

Contrary to popular belief, we do not hate Markit or its PMIs. We just do not trust them to inform us about what the economy is up to.