As China’s factory-gate prices soared this year, investors worried the country would become a new source of inflation for the rest of the world. Instead, the world’s second-largest economy has helped alleviate some price pressures caused by the pandemic, and appears likely to keep doing so—at least for a while. Read More Here
Though they have received most of the attention, supply bottlenecks are hardly the only factor to consider when assessing the recent surge of inflation. Far more important are broader structural changes in the economy and the alarmingly complacent attitude of central banks. Read More Here
While the dollar outlook has been cloudy in the recent years, it is fighting back, thanks to tougher interest-rate tightening expected from the Fed and a brighter political climate under US President Joe Biden. Read More Here
A gusher of money is spilling out from the U.S. economy and rippling around the world, driving the global recovery to an extent it hasn’t in decades and giving confidence to businesses to invest in meeting the huge American demand. Read More Here
The skyrocketing price of shipping goods across the globe may hit your pocketbook sooner than you think — from that cup of coffee you get each morning to the toys you were thinking of buying your kids. Transporting a 40-foot steel container of cargo by sea from Shanghai to Rotterdam now costs a record $10,522, […]
The global economy is entering unfamiliar territory. After a decade of worries about inadequate demand and spending power in the aftermath of the global financial crisis, signs of insufficient supply are now emerging. Read Here | The Economist
Inflation in most rich countries has been low since the 1990s, not least because of central banks’ success in lowering long-term inflation expectations. But today’s policymakers must weigh how far they can go in trying to engineer a post-pandemic recovery without unanchoring these firmly entrenched beliefs. Read Here | Project Syndicate
As in the 1970s, a severe economic shock has forced governments to pursue massive fiscal and monetary expansion, thereby sowing fears of future inflation. But not all shocks are the same, and the key question now is whether we can be confident that the current state of exception will end. Read Here | Project Syndicate
Beyond the US, the fragility of growth in debt-ridden China and some other emerging markets remains a concern, as do economic, policy, financial and political risks in Europe. Worse, across the advanced economies, the policy toolbox for responding to a crisis remains limited. The monetary and fiscal interventions and private-sector backstops used after the 2008 […]
After years of low inflation, investors and policymakers have settled into a cyclical mindset that assumes advanced economies are simply suffering from insufficient aggregate demand. But they are ignoring structural factors at their peril. Read Here – Project Syndicate
looking beyond borders 