Japan Cuts Solar, Raises Wind Tariff

Japan slashed the rate that solar power earns on the grid by 11%, down to 32 Yen (31 cents) per kilowatt-hour. Beginning in the new fiscal year in April, projects that come online will receive that lower rate for 20 years. Japan instituted the most generous feed-in-tariff in the world after the Fukushima meltdown, in an effort […]

Russia to Fall Into Recession as Tensions Rise?

From Reuters: Russia is at risk of recession as investors pull money out of the country, with growth likely to evaporate if capital outflows reach $100 billion, the head of its largest bank, state-owned Sberbank, said on Monday. Capital has fled Russia, with stocks and the rouble sliding following Moscow’s seizure of Crimea from Ukraine and […]

UK Inflation Falls—and a Puzzle

The UK’s February inflation figures were good, showing a drop in consumer price inflation from a below-target 1.9% to even further below target at 1.7%. If the squeeze on real wage growth had not already ended – as I think it had – it is clearly on the run now. Inflation has not been this […]

MSCI to Decide in June About Including China’s A-Shares

Two weeks ago, MSCI indicated that it was considering including China’s A-shares (yuan-denominated mainland shares)  into its emerging market equity index.  It plans on consulting with 2000-3000 fund managers, with a decision expected in June.  If it does decide to include China, it most likely won’t be until mid-2015.   The early results are thought […]

India’s Investment Slowdown: The High Cost of Economic Policy Uncertainty

By Rahul Anand and Volodymyr Tulin India, after witnessing spectacular growth averaging above 9 percent over the past decade, has started to slow in the last few years. The slump in infrastructure and corporate investment has been the single biggest contributor to India’s recent growth slowdown. India’s investment growth, averaging above 12 percent during the last decade fell […]

Limits on the Efficacy of Russia’s Economic Weapon

The United States and European allies responded to the Russian annexation of Crimea by announcing targeted economic sanctions against a list of Russia individuals (plus one bank) and threatening to impose stronger sanctions in the future. The sanctions included travel restrictions and asset freezes for the listed individuals. On March 24, the Group of 8 […]

The Promise of Bangladesh Amid U.S. and Chinese Rebalancing

Recently the US Ambassador in Dhaka, Dan Mozena, said that Bangladesh would be a “mighty contributor” to the huge flows of commerce along this 21st century trade route by turning the hub of the Indo-Pacific economic corridor thanks to its “geographical gift.” However, Mozena added that there were constraints and challenges that need to be addressed […]

Fed Watch: Williams Acknowledges Forecast Change

Earlier today I said: Fourth, the dots undeniably moved forward and steeper, which means individual outlooks on the definitions of “considerable period” or “accommodative” did in fact change in meaningful ways.  I am surprised, however, that this was not anticipated by market participants given the rapid decline in the unemployment rate.  Along any given Fed objective function, […]