There is little hope that loosening monetary policy will help in the current situation, but who knows?
The dark clouds of trade friction have pushed the central banks of the leading countries toward monetary relaxation. With limited room for policy maneuver, the tactics of U.S. President Donald Trump – fanning discord while increasing pressure for relaxation – are simply inflicting unnecessary risks on the world [Read more]
Yet relaxing monetary policy to prevent a recession, which will happen sooner or later, also leads to conditions for an even worse financial crisis than the earlier one.
Political rather than economic factors threaten the steady growth of the global economy today.
The US indices fell due to a number of factors. The most important of these is an obvious correction after years of growth.
If the working age population who became discouraged by employment difficulties and left the labor market is taken into account, U.S. unemployment rate should be at a staggering 23 percent.
The Federal Reserve raised the interest rate by a quarter of a percent last Thursday, worrying some people that the RMB* and China’s macro-economy would be impacted. However, China is well prepared in this area and is resilient toward risks in the financial market.
The rate increase is not sudden; it was well [Read more]
The world’s largest economy brings unsettling news to the most powerful central bank in the world – the cost of labor is growing at the lowest rate in the last three decades, consumer spending is inevitably slowing down, and industrial activity is putting on the brakes. To make matters worse, Puerto Rico, which [Read more]
America’s central bank is finding it difficult to know what the rates of unemployment and inflation are in the United States. It is wavering on toughening its monetary policy, especially as Congress will not forgive it if it makes the wrong move.