LONDON (Reuters Breakingviews) - Inflation has in recent years been like Samuel Beckett’s Godot: much awaited but never turning up. That is about to change, according to economists Charles Goodhart and Manoj Pradhan.
LONDON (Reuters Breakingviews) - Charles Goodhart and Manoj Pradhan tackle an issue perplexing policymakers and investors: if, and when, price pressures will rise. The authors of “The Great Demographic Reversal” discuss ageing societies, emerging economies, and why the world won’t follow in Japan’s footsteps.
LONDON (Reuters Breakingviews) - European Central Bank President Christine Lagarde is running to stand still. Her policy rate is at a record low. But the weakness of inflation means that the real rate, which is adjusted for changes in prices, is actually rising. This may buoy the euro – the last thing that Lagarde needs.
LONDON (Reuters Breakingviews) - As befits a big buyer of overseas goods, Britain is importing a job retention scheme along the lines of those used in Germany and France. The plan that finance minister Rishi Sunak unveiled on Thursday will help the economy cope with rebounding coronavirus infections and ticks several boxes. But he is failing low-skilled workers whose roles may disappear forever.
LONDON (Reuters Breakingviews) - As budget deficits swell, one of the highest profile advocates of Modern Monetary Theory joins Swaha Pattanaik to discuss her approach to public finances, U.S. presidential hopeful Joe Biden’s economic agenda, how her thinking evolved, and her experience of academic gatekeeping.
LONDON (Reuters Breakingviews) - It seems to take a lot of money to generate even a little bit of inflation. Around $20 trillion worth of global stimulus measures have been unveiled so far this year on Bank of America’s calculations. That’s more than a fifth of last year’s world economic output. Yet investors are not exactly quaking.
LONDON (Reuters Breakingviews) - Rishi Sunak is perfecting his Santa act. Nearly four months after announcing 30 billion pounds of extra spending, Britain’s finance minister on Wednesday unveiled new measures worth up to the same amount to help the economy. The best of them aim to avoid deep scars in the labour market.
LONDON (Reuters Breakingviews) - Success lies in the eyes of the beholder. Bank of Japan Governor Haruhiko Kuroda is pursuing a policy of yield-curve control, which he defines as keeping 10-year government bond yields tethered near zero. He is hitting his target but may nevertheless saddle his country with an economic headache.
LONDON (Reuters Breakingviews) - It has been a hectic year for central bankers, who are on the front line of fighting a global recession. The head of the Bank for International Settlements joins Swaha Pattanaik to discuss how to unwind massive monetary stimulus, risks in the financial system, and regulation.
LONDON (Reuters Breakingviews) - Crisis is supposed to reveal character. If so, it’s showing European Central Bank President Christine Lagarde in a flattering light. The Frenchwoman on Thursday confirmed she is as capable of decisive action as her predecessor, Mario Draghi, by announcing she will buy more assets and for longer than initially planned to help the euro zone recover from a coronavirus-induced recession. But she is also luckier than the Italian.