Economic Corner
Weekly Economic brief.
Monthly Economic brief.
Monetary policy, market dynamics and inflation
In this final edition of the Economic Brief before the summer break, we will investigate three areas of interest: decreases in interest rates, with many central banks across the world cutting rates for the first time in years; the valuations of US listed companies, which have risen significantly; and role of corporate profits contributing to the inflation experienced over the past few years. Decreases in interest rates are finally on their way, heralding what seems to be the end
Economic challenges
A new study on long-term interest rates has identified what appears to be a downward structural trend – one lasting centuries! This runs counter to received wisdom on the matter, challenging our preconceived notions. But it is not just the past that is of interest here. In recent years, the global economy has faced a number of obstacles that have complicated the work of economists in forecasting its future trajectory. Brexit, Covid-19, the war in Ukraine – the list goes
Sticky inflation
Why is the remaining portion of inflation proving so difficult to overcome? Adapting monetary policy has worked well to rein in the alarming inflationary trends experienced over the past couple of years, but it is struggling to finish the task of slowing economic activity and bringing consumer price growth down to target levels. In this edition of the Economic Brief, we will examine the situation in the US in a bid to explain this resilience. United States: money supply increased
Persistent inflation
In this edition of the Economic Brief, we continue tackling inflation. A stubborn chunk is proving difficult to bring under control, and we will explore the factors contributing to it. We will also investigate the effect of this persistent inflation on the bond markets and the conclusions that can be drawn for upcoming monetary policy. Finally, we will touch on another issue affecting the US economy: the federal deficit and forecast rise in federal debt. United States: the question of
Taking a step back
The Economic Brief returns in 2024 with two topics in the spotlight. Continuing a theme from the last edition, we look into inflation and consider how its current development compares with past crises and trends. We move on to examine corporate profits, reviewing in particular forecast against past performance and interpreting how feasible such forecasts may be. How can we beat inflation? To answer this question, let us take inspiration from the IMF’s paper One Hundred Inflation Shocks: Seven Stylised
A turning point?
Uncertainty continues to reign over the economy. Growth is weak. Money is tight. What are the consequences of all this? In today’s edition of the Economic Brief, we take a look at three topics to better understand the situation: uncertainty in economic forecasts and what that means for business and economic agents; easing monetary conditions in the United States and the eurozone; and disinflationary trends on both sides of the Atlantic, but why our American friends appear to be in