http://www.rbs.comThe Royal Bank of Scotland Group Chief Economist's Weekly Briefen-ukhttp://www.rbs.com/economic03.asp?id=ECONOMIC/WEEKLY_BRIEF/DHappy New Year! To say that 2008 was challenging would be an understatement. In the second half of the year, all the major industrialised economies contracted, while asset prices, from housing to commodities, took a pounding. Equities saw their worst annual performance in decades, with falls of c30 to 40% in the UK, US, Eurozone and Japan (Tunisia and Ghana were the only markets that ended the year up!). The data flow suggests things will get worse before they get better.RBS2007-04-21http://www.rbs.com/economic03.asp?id=ECONOMIC/WEEKLY_BRIEF/CThe shift towards zero short-term interest rates in the US and Japan does not mean that policymakers are out of options, but these historic moves emphasise the scale of the challenges facing the global economy in 2009.RBS2007-04-14http://www.rbs.com/economic03.asp?id=ECONOMIC/WEEKLY_BRIEF/BChristmas is fast approaching, but there were few signs of seasonal cheer last week. There was yet another batch of downbeat data and sharp swings in financial markets as investors contemplated the fate of US auto producers.RBS2007--7 http://www.rbs.com/economic03.asp?id=ECONOMIC/WEEKLY_BRIEF/ACentral bankers played catch-up with the Fed last week, driving interest rates lower. Sweden saw the largest move, lowering rates by 175bps (to 2%), followed by a 150bps cut in New Zealand (to 5%), 100bps in the UK (2%), Australia (4.25%) and Thailand (2.75%). Even the ECB surprised, with a 75bps cut (to 2.5%). The negative data flow suggests these moves won't be the last.RBS2007-03-31