Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Economy

xchrom

(108,903 posts)

11. Don’t Hike Alone Is Jackson Hole Bear Warning for Central Banks

Reply to Tansy_Gold (Original post)

Mon Aug 18, 2014, 08:01 AM

Aug 2014

http://www.bloomberg.com/news/2014-08-18/don-t-hike-alone-is-jackson-hole-bear-warning-for-central-banks.html

“Hiking alone is not recommended” goes the warning to walkers in Wyoming’s Grand Teton National Park.

Central bankers should perhaps heed the same advice when it comes to interest rates as they fly this week to the Tetons and their annual symposium on monetary policy in Jackson Hole. Currency bulls rather than grizzly bears are the reason there is safety in numbers for them.

The point is highlighted in recent research by Joachim Fels and Manoj Pradhan, economists at Morgan Stanley in London, who use a cycling rather than walking analogy to make it.

Reviving a 2009 analysis, they note cyclists prefer not to ride solo because of wind drag and to instead stick to a group - - or peloton -- to reduce headwinds by as much as 40 percent.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

26 replies

= new reply since forum marked as read

Highlight:

STOCK MARKET WATCH -- Monday, 18 August 2014 [View all] Tansy_Gold Aug 2014 OP

I'm still waiting for gas prices to decline like the crude oil price did Demeter Aug 2014 #1

It's been dropping here. $3.13 Fuddnik Aug 2014 #3

When worlds collide (or seem to) Demeter Aug 2014 #2

You just guaranteed it will be cloudy in my neighborhood. tclambert Aug 2014 #4

I slept through it! Demeter Aug 2014 #10

Yellen Dashboard Warning Light Glows as Millions Work Part Time xchrom Aug 2014 #5

Bull Market Waning as Barclays Sees 1% Gain for S&P 500 xchrom Aug 2014 #6

Why Draghi’s Cheap Cash Offer to Banks May Lack Appeal xchrom Aug 2014 #7

Russia Widens Ruble Trading Band in Move Away From Managed Rate xchrom Aug 2014 #8

Norway Fund Told to Forget Adding Risk Until Oversight Fixed xchrom Aug 2014 #9

Don’t Hike Alone Is Jackson Hole Bear Warning for Central Banks xchrom Aug 2014 #11

European Stocks Rise as Ukraine Concern Eases; Renault Up xchrom Aug 2014 #12

College Tuition Costs Soar: Chart of the Day xchrom Aug 2014 #13

China’s First Bond Default in Focus as Debtholders Meet xchrom Aug 2014 #14

Thai Economy Averts Recession as Outlook Improves After Coup xchrom Aug 2014 #15

JPMorgan Sees Won Rising to Pre-Lehman Levels on Surplus xchrom Aug 2014 #16

Iran Lures Investors Seeing Nuclear Deal Ending Sanctions xchrom Aug 2014 #17

London Home Asking Prices Plunge Most in More Than Six Years xchrom Aug 2014 #18

Palladium Advances to a 13-Year High as Gold Declines xchrom Aug 2014 #19

American Cities Can Now Be Divided Into 4 Different Categories, Depending On How They're Gentrifying xchrom Aug 2014 #20

Bourbon Production Reaches Highest Point Since '70s xchrom Aug 2014 #21

The Global Economy Has Issues xchrom Aug 2014 #22

The 8-Year Long Decline In Japanese Interest Rates Will Do Some Serious Damage xchrom Aug 2014 #23

Why Some Foreign Banks Don't Want The UK To Leave The EU xchrom Aug 2014 #24

Today's cartoon Crewleader Aug 2014 #25

The World's Biggest Companies Have Amassed $7 Trillion In Cash xchrom Aug 2014 #26