In economic theory, “one person’s spending is another person’s income,” which drives aggregate demand in the economy. Often, this cycle breaks due to flawed economic policymaking that ends in economic crisis.
THE CORNER TEAM | Although fiscal austerity and structural reforms implemented have inflected some euro zone countries a severe pain, they will bring them external capital inflows, Chinese rating agency Dagong Credit predicts for 2014. This combined with the potential increase in Germany’s import demand will mean that the euro zone economies will rebound a little and see pressure of sovereign debt crisis ease further.
LONDON | Morningstar Europe reported Tuesday that February update showed net positive inflows, with investors adding more than €15 billion in new assets to long-term European-domiciled funds. Fixed-income funds attracted the vast majority of investor cash, with some €12.5 billion in inflows, the asset class’ highest inflow figure since August 2010. Equity funds saw a modest outflow of investor capital, while money market funds lost €13 billion. Morningstar research said that funds focused…