Search results for: gdp

  1.  
  2. 1
  3. 2
  4. 3
  5. 4

Gaps, not growth

Monetary policy is primarily about “gaps” not growth: the Fed is trying to reduce spare capacity in the economy, not bring about a rapid expansion per se. Despite concerns over cyclical weakness in labor force participation, the unemployment rate is sending similar signals as most other output gap proxies.

Tagged with: Economy, U.S. Economy

Is Europe Heading for Japanese-style Deflation?

There are many parallels between the euro area today and Japan in the 1990s. The euro area appears to be on track to avert deflation in the short term.

Tagged with: Equities, Global Economy, Investing, Markets

Interest rates in a highly indebted economy

In a highly indebted economy, there is no fixed cap on the level of interest rates. Any increase in interest rates must be consistent with tolerable debt service ratios, the existing stock of debt and private sector savings.

Tagged with: Economy, Fixed Income, Investing, Markets

Neutral funds rate going up?

The idea of low neutral funds rate has surprising currency, but could erode with more evidence of solid growth. We believe incoming information suggests the neutral funds rate would be moving higher, not lower.

Tagged with: Economy, U.S. Economy

U.S. rates — Waiting for the sound

Latest data showing faster growth and shrinking gaps. Normalizing economy creates asymmetry in monetary policy outlook.

Tagged with: Economy, Investing, U.S. Economy

Quality milestone in the European recovery story

Business, economic and political news all point to a strengthening recovery in Europe. We foresee a period of low inflation and low interest rates in Europe.

Tagged with: Global Economy, Investing, Markets

Income inequality, disinflation and profit growth — the role of globalization

Income inequality has tended to rise in both developed and EM. Companies look across the globe to determine where they can manufacture their products at the lowest risk-adjusted cost.

Tagged with: Economy, Global Economy

Missing links and multipliers

Several forces are colliding now and causing a downshift in the trajectory of the U.S. housing recovery. Household formations remain at multi-year lows due in large part to mediocre income and job gains in combination with high student loan debt by 25 – 45 year old homebuyers.

Tagged with: Economy, U.S. Economy

A less certain world favors high-quality stocks

Current sentiment indicators do not suggest that Europe is heading back towards recession, though GDP growth will remain subdued. If Q3 sees a rebound, full QE may be unlikely this year, but any further weakness will increase the pressure on the ECB to act.

Tagged with: Economy, Equities, Global Economy, Investing, Markets

Is Europe heading for Japanese-style deflation?

Although there are many differences that should ensure that the eurozone does not follow Japan‘s fate, policymakers will need to act forcefully if the risk of deflation intensifies. While the euro area appears to be on track to avert deflation in the short term, many euro countries are “one crisis away from deflation.”
The European Central Bank (ECB) claims to be ahead of the game, but policy needs to be more pro-active.

Tagged with: Global Economy, Investing
  1.  
  2. 1
  3. 2
  4. 3
  5. 4

About Us

Backed by more than 100 years of experience, Columbia Management is one of the nation’s largest asset managers. At the heart of our success and, most importantly, that of our investors, are highly talented industry professionals, brought together by a unique way of working. At Columbia Management, reaching our performance goals matters, and how we reach them matters just as much.