The year has not started well for global financial markets. Undoubtedly, one reason that stocks have slumped is that the United States Federal Reserve under Janet Yellen has started to raise interest rates and signaled that more hikes are coming.

The hawkish stance of Ms. Yellen’s Fed not only risks derailing the U.S. economy and throwing it back into recession, but it could also exacerbate the tensions observable for some time within what we have called the “dollar bloc.”

For the past six months, Ms....

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 Lars Christensen
The general perception is that U.S. monetary policy is very accommodative, and that monetary tightening has only just begun with the rate increase in December. This view rests on a misunderstanding of what monetary policy really is
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