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"We must have discipline"

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Teutonic cry of "we must have discipline" echoes around the EU Commission. The Commission will decide if the Italians should take back their budget homework and do it again, paying attention to the instructions written on the blackboard. Those instructions being, of course, "don't be fiscally irresponsible."
  • Saudi Arabia's energy minister indicated crude oil production would not be used as a political weapon (this time). The economics of this make sense, as Saudi Arabia rather needs the oil revenues it has. US policy towards Iran and a global economy that is humming along around trend should keep oil prices supported.
  • In recent days China has cut income tax, announced deregulation plans, and set out an intention to cut corporate taxes. They have not announced plans to build a big, beautiful wall to keep out foreigners, but that may because they already have a big, beautiful wall and they do not feel the need to build another.
  • Haldane and Carney of the Bank of England both speak, under the shadow of the UK-EU divorce. Bostic and Kaplan of the Fed both speak, under the shadow of political criticism. German producer price inflation was somewhat higher than expected.