Comments on: Global Central Bank Interest Rates

by: james

Wed, 10 Dec 2008 00:26:45 +0000

agree with you about wanting to avoid a ‘lost decade’ and learn from japan.

I think it is interesting how it still seems that japan’s interest rate correlates with the rest of the world’s movements.

Even though they are significantly less than everyone else, I wonder if a units free measure would show significant correlation between the movements of japan’s interest rate and the rest of the world’s average. Actually, I wonder what the correlation for all of the rates and the ROW average is.

by: Babak

Sun, 07 Dec 2008 20:07:55 +0000

I added Japan - not sure how much insight it adds. Other than being a scenario to avoid.

by: Babak

Sat, 06 Dec 2008 17:20:29 +0000

bolsaspain, I hear ya (your english is fine). The problem that the ECB has is how to manage a large bloc of countries when they are at different stages of growth. Also, you have to remember that their main target is inflation, not economic growth or employment.

by: Babak

Sat, 06 Dec 2008 17:18:48 +0000

james, you have a point. it would round out the picture to include those two. I’ll keep looking for the data. If you run into it, let me know

by: james

Sat, 06 Dec 2008 16:48:50 +0000

thats funny about china, i would have expected that.

don’t you think your data is incomplete without outliers? I think a major problem of the current crisis, people didn’t expect the outlier. At least in Modern Portfolio Theory based investment applications/models.

by: Babak

Sat, 06 Dec 2008 16:43:52 +0000

james, Japan would have been an outlier, even more so than Australia so I didn’t think it would be of any use. I would have included China but couldn’t find any data from their site - which looks like it could have been made by an 11 year old over a weekend.

by: james

Sat, 06 Dec 2008 16:29:35 +0000

why did you leave out Bank of Japan and the People’s Bank of China?

one can argue that these are more important than Sweden, Australia and England as they have higher combined GDP’s and are bigger trade partners with the US, hence more intertwined with the USA hegemony dominated global economy.

by: bolsaspain

Sat, 06 Dec 2008 10:57:40 +0000

Once you read this, you realize that those who are at the forefront of the economy are a few useless. Here in Europe we are mortgaged up to his neck and Mr Trichet at the rope stretched until drowned.
It is incomprehensible.
Excusme for my patetic english!!!