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.
World economy
The Positive Effects of Trump’s Challenge to NAFTA
Ivan Farias Pelcastre and Hera Jabeen | Since the start of diplomatic relations in 1944, and until very recently, economic and political links between Canada and Mexico were limited. Now to effectively progress with the NAFTA renegotiations, Canada or Mexico can recalibrate their trade and make concessions to the US process.
Geopolitical And Economic Uncertainty: Deep Impact?
The relationship between geopolitics and economic variables is a recurrent theme in the media. And not just in the media: economists are increasingly more aware of the importance of analysing geopolitical risks to complete an accurate exercise on the economic outlook.
On Gender Equality, Is the Public More Progressive Than Political Elites?
Women have rallied around the world for gender equality and against violence on International Women’s Day celebrated in current week. Citi analysts Tina M Fordham and the independent political commentator Peter Kellner have wondered if this movement will last and can mean a sufficient momentum to bring about a “tipping point”.
First ‘Belt and Road’ Asset-Backed Security Gets Go-Ahead
Zhang Yu and Lin Jinbing via Caixin | China’s first “Belt and Road” asset-backed security (ABS) has won approval from the Shanghai Stock Exchange in a sign of support for China’s ambitious international investment and trade initiative.
Donald Trump is unstoppable in his advance towards protectionism
US president Donald Trump is continuing along the path towards protectionism, positioning himself to take advantage of more beneficial trade conditions for the leading global economy.
The Economy of Digital Money
By issuing digital money, the central banks could provide an answer for the substitution of jobs by robotization, or solve the problem of excessive public debt, easing the increasing pressure on finances from burdens like pensions.
Gold In Times of Boom And Bust
If and when interest rates keep edging up, the ongoing boom can be expected to come to a shrieking halt, running the severe risk of turning into a bust. From the investor’s viewpoint, gold can be considered a sound currency, as the “ultimate means of payment”.
Spain Multinationals Expect To Obtain Better Results In Latin America Than In Spain In 3 years
Some 68% of Spain’s multinationals and 47% of SMEs present in Latin America expect to generate more revenue in the region than in Spain in a period of three years,
Emerging Markets: Standing Up To Higher Volatility
During the second most significant repricing in U.S. Treasury bond yields since 2013, emerging markets debt, especially local currency bonds, has so far significantly outperformed equity, oil and U.S. Treasury beta. PIMCO’s analysts believe this resilience in EM reflects the resolution of most balance-of-payments issues over the past few years.