The ECB now aims for inflation at 2%, rather than its previously elusive target of “close to, but below, 2%.”
A few reasons why you might care?
· You may be on a fixed or variable interest rate mortgage. Changes in the level of interest rates will affect your net worth and your ability to borrow respectively.
· You are an entrepreneur and wonder fi you’ll finally be able to lend from the bank.
· You’re a citizen that travels and wonders why the ECB wants the price of food, flights and cinema tickets to increase.
For over 23…
Since the Bitcoin halving in May 2020, the cryptocurrency market has experienced several exciting bull runs and downturns. During this time, more institutional investors and regular citizens have invested in cryptocurrencies . As cryptocurrencies have grown in popularity, they have come under more regulatory scrutiny. Governmental and regulatory approaches to cryptocurrencies vary greatly around the world. At one extreme, El Salvador has passed legislation making Bitcoin legal cash, while China, which has the biggest concentration of Bitcoin miners, has launched a mining crackdown.
Meanwhile, the European Commission’s proposed Regulation in Crypto Markets (MiCA) is undergoing its initial readings in…
Innovation is at the heart of the UK’s strategy to boost productivity and economic growth. It offers new opportunities to increase the competitiveness of UK firms and create transformative technologies which address societal challenges ranging from climate change to better health outcomes. According to the Office of National Statistics (2020); net expenditure on research and development (R&D)hit a new high of £13.1 billion in 2019. Similarly, the total R&D expenditure on knowledge transfer activities reached £13.4 billion in 2019 and represents 0.6% of gross domestic product (GDP), unchanged since 2010.
Looking ahead, the government is determined to build on…
The price of Bitcoin and other cryptocurrencies have gone through wild swings. Interest from public investors, experts and regulation have surged, but the future regulatory framework for digital assets is complex and uncertain.
Prior to COVID-19, monetary policy was the new game in town. But cryptocurrencies appear be the leading cause of worry amongst regulators across the world. The U.S. is more accommodating about cryptocurrencies, but China has imposed an outright ban, while Europe continues to straddle the regulatory line.
Whenever a new financial asset is created — such as derivatives — regulators impose guard rails to prevent the…
The COVID-19 pandemic imposed an unprecedented shock on the global economy, causing significant outflows of capital from emerging market economies, a sudden drop in domestic demand, and complete or at least partial closure of economic sectors. In addition to the loss of human lives, falling incomes and deep retrenchment in consumption have caused a contraction in GDP growth across advanced, emerging, and developing market economies. …
As the impact of COVID-19 wanes and governments reduce or completely withdraw social distancing measures , a heterogenous recovery appears to be in sight. While the debate on secular stagnation continues to ravage, inflation appears to be exceeding its mandated targets in recent months. The COVID-19 pandemic depressed demand across most advanced and developing market economies and the 90th percentile of most income distributions were affected, causing consumers to postpone purchases of cars, electronic products, and services such as tourism and entertainment.
In the last three months, governments have started vaccinating their citizens and economies have largely reopened, allowing…
The COVID-19 pandemic is an unfortunate health and economic shock that bought the U.S. economy to a grinding halt. However, vaccine rollouts and the gradual reopening of the economy are causing the U.S economy to gradually return to pre-pandemic levels. The U.S. Bureau of Labor Statistics showed that in May 2021, total nonfarm payroll employment rose by 559,000, and the unemployment rate declined by 0.3% to 5.8%. …
The Dollar’s pre-eminence may be in decline, but it’s far from fragile!
These days, top policymakers and many economists across the world appear to think the dollar’s days might be numbered. It would appear that China’s economic rise and the ascent of the Euro and Renminbi has caused market actors and analyst to expect a less dominant role for the dollar. Even so, the dominant currency paradigm suggests that the “dollar’s” exorbitant privileges, what some have termed countercyclical and event-averse characteristics have waned somewhat. So, is the dollar set to lose its global status as the currency of preference?
Oil prices have risen precipitously due to vaccines, inoculations, and the gradual reopening of borders across the world. American regulators found the vaccines from Johnson and Johnson to be safe and effective and should arrive in the U.S. as a lower-cost option in United States within days. Other vaccines from AstraZeneca have been equally manufactured and shipped to Ghana, the first recipient under the COVAX category. The 600, 000 doses have been produced by the Serum Institute of India after Ghanaian officials proved that their infrastructure was sufficiently developed to inoculate its citizens across the country.
Admittedly, Moderna announced…
The COVID-19 pandemic a near-halt of the global economy as governments-imposed lockdown measures in other to reduce the spread of the virus. As vaccines are developed and citizens inoculated, governments have begun relaxing lockdown measures. At the height of the pandemic, lockdown and social distancing measures caused citizens across the world to stay at home, while global manufacturing and tourism were badly hit by the effects of the virus. Lower rates of domestic and foreign travel and weaker industrial activity caused demand for oil prices to fall.
As oil prices hit new lows, with WTI falling to $39.16/bl and…
I am an economist and contributor to Nkafu policy, a think tank. I cover global economic, fiscal and monetary policy with policy and asset price implications.