Translation of "Wirtschaftliche rahmendaten" in English

Economic parameters, such as the oil price, have seen a surprisingly strong correction.

It is clear that exchange rate flexibility must play a role in the necessary rebalancing so that exchange rates reflect economic fundamentals, as was underlined by President Trichet.

Wealth effects are for the wealthy, whether they are driven by market fundamentals or QE.

The economic situation is right, and the financing options are fantastic.

Economic fundamentals have fallen by the wayside.

None of this can be explained by economic fundamentals.

One critical difference lies in economic fundamentals.

Lasting convergence of economic fundamentals is a prerequisite for sustainable exchange-rate stability.

Extending the continent’s rise will require strengthening the continent’s economic fundamentals.

As such, monetary policy, rather than market-based fundamentals, increasingly shaped asset prices.

The lasting convergence of economic fundamentals, in particular price stability, is a prerequisite for sustainable exchange rate stability.

First, if growth did not recover and surprise on the upside (in which case high asset prices would be justified), eventually slow growth would dominate the levitational effects of liquidity and force asset prices lower, in line with weaker economic fundamentals.

In justifying her move she explained that “detailed checks, the experiences of the past few months and a closer knowledge of the economic situation have led me to conclude that the pre-conditions for the path chosen by me no longer exist“.

As Yale historian Paul Kennedy has long maintained, the rise and fall of great powers invariably occurs under conditions of “geostrategic overreach” – when a state’s global power projection is undermined by weakness in its domestic economic fundamentals.

But can a few dozen basis points in (poorly measured) long-term inflation expectations justify the need for massive quantitative easing and a policy rate 250 points lower than it was at a time of weaker market fundamentals?

Then there was “forward guidance” (FG), the commitment to keep policy rates at zero for longer than economic fundamentals justified, thereby further reducing shorter-term interest rates.

And equity values’ decline toward a more realistic reflection of economic fundamentals will further weaken aggregate demand and growth.

So if the correlation makes sense given the fundamentals, it seems sensible to bet on its persistence.

In general, the top priority must be improvement in economic and policy fundamentals to the point that they better validate existing elevated asset prices, while laying a foundation for greater gains over time.

But before making their wish list, investors should consider the longer-term risks associated with the decoupling of financial markets from economic and policy fundamentals.

Eighth, some emerging-market economies with weaker economic fundamentals may not be able to avoid a severe financial crisis, despite massive IMF support.

There is nothing flashy about Turkey’s rise, which has been based on fundamentals, rather than bubbles or resource discoveries.

Instead, they were being forced to judge the sustainability of financial asset prices that, boosted by liquidity, had notably decoupled from underlying economic fundamentals.