World economy

The concurrence of global political risks with a reduced capacity for markets to absorb them is concerning

Is It Time To Worry About Geopolitical Headwinds: U.S., Iran, and North Korea

“Separating political noise from market signals in an era of Tweetstorms, unconventional leadership, and low public trust has possibly never been more challenging”, says Tina M. Fordham, chief global political analyst at Citi. Will geopolitical risks grow in their potential to impact markets following the withdrawal of Quantitative Easing (QE)?


Are current high levels of inequality desirable or detrimental?

Jay Gatsby’s American Dream: Between Inequality And Social Mobility

CaixaBank Research | In Spain, the richest 1% of the population earns 8.6% of the country’s income while this figure reaches 20.8% in the US. Are such high levels of inequality desirable or detrimental? Ultimately such a question must be answered by each country according to its own social preferences and values.


Jerome Powell baffled both the experts and the markets

Jerome Powell ditches forward guidance

In his first press conference, Jerome Powell baffled both the experts and the markets. After reading the hawkish introductory statement, he defused all fears for a harsh and swift monetary tightening.


Gold does not have an "inherent interest rate

Gold, Interest Rates, And Money

Degussa | Gold is a “good” that has a truly global demand, and its price is determined by numerous factors. One of those is the market interest rate. The reason is obvius: Gold does not have an “inherent interest rate”. The holders of gold have to bear “opportunity costs”.


A world with less inflation

Inflation: A Little Can Turn Out To Be A Lot

Just a couple of years ago, deflation was a concern for US economists. And, although it’s true that this threat has almost disappeared, rises in prices have shown themselves to be surprisingly elusive.

 



Be careful with the Taylor Law

Be careful with the Taylor Law

We need to be aware of the existence of regulations over and above the well-known Taylor Law, starting with this regulation adjusted to establishing a downward limit on rates of 0%, which is very important in the US Fed’s case.



Each country for itself in the world economy recovery

Each Country For Itself

Growth has made a comeback but each country already wants to take its own path. As explained by Philippe Waechter, Chief Economist of Ostrum AM, “unity is no longer on the cards and the world economy is fast going down a very different road”.


Fed monetary policy

The Fed Cowers From A Phantom

With wages rising at well under 3%, any productivity improvements greater than 1% will mean wages are not helping the Federal Reserve hit its putative 2% inflation target.