Real GDP in Germany advanced 1.5% in the first quarter, or 6.1% annualized, and it wasn’t even the strongest quarter in the past year.  GDP had climbed by 12.1% in 2Q10, or 8.7% annualized.  Adjusted for working day variations, GDP was 4.9% higher in 1Q11 than a year earlier and 7.3% greater than the level [...]

The euro, which touched a low of $1.3969 on Monday, recovered to $1.4108, 0.4% stronger than Monday’s close.  The dollar is also down overnight by 1.0% against the kiwi, 0.6% versus the Aussie dollar, 0.4% relative to the Swiss franc, 0.3% against the yen and sterling, and 0.1% versus the Chinese yuan. Stocks have stabilized [...]

In the latter 1960s and early 1970s when I was studying economics, accepted wisdom swung away from the teachings of Keynes and embraced a neo-classical ideology that encompassed several beliefs.  Renewed faith was placed in market mechanisms as a far superior way than others for deciding the allocation and distribution of goods, services and factors [...]

Israel’s policy interest rate was increased today by 25 basis points to 3.25%.  It was cut to 0.5% during the Great Recession.  But way back in August 2009, the Bank of Israel implemented the first post-recession hike among all central banks.  There were two more increases in 2009 of 25 basis points each, three in [...]