Monthly publication - October 2014 - A marked desynchronization

The economies of the United States and the euro zone are moving in diametrically opposite directions. While the U.S. Federal Reserve (the Fed) officially announced the end of its quantitative easing program at the FOMC’s October 29 meeting, the European Central Bank is resorting, as best it can, to the use of non-traditional monetary stimulus policies. The credit cycle, a vital component for launching and sustaining the economic cycle, is doing rather well south of the border, but continues to contract in Europe. If we add the fact that Germany seems to be sliding into a new recession, it is difficult to think of a time when the major advanced economies last contrasted so sharply. ...   

Read the article