The outlook for the global economy does not seem to be so favorable given the significant challenges it has to face. More specifically, the problem of inflation is major at the moment with most analysts believing that the phenomenon is temporary and once supply chain problems normalize, striking a balance between supply and demand, inflation …
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Further Increase in Inflation launches Increase in Social Inequalities
While the global economy has not yet been able to leave the Covid-19 pandemic irrevocably behind and go unaffected, at the same time, distortions are being created in the global socio-economic context which will surely lead to negative developments. Given the very serious and persistent increase in raw material prices combined with the existing negative …
The Era of Expensive Money
Central banks around the world are beginning to gradually implement a tapering policy in which they reduce their purchases on bonds by effectively reducing the liquidity cannula in economies. This is due to the gradual improvement of economic indicators and the rapid rise in inflation. Τhe FED, the Bank of England, the Norges Bank and …
Why Do Problems Continue in the Global Supply Chain?
The problems in the global supply chain continue unabated and do not normalize over time. This is due to parameters that exist and maintain the complex distortions in the specific area of economy and trade, reaching the limits of its operation with several chances of fragmentation and collapse. The reasons for the problems Two years …
Inflation, energy and the upcoming tapering sank the markets
The ongoing tightening of monetary policy by the world’s major central banks creates a suffocating environment with increased chances of development leading to a major mix of crisis and recession. In addition, Joe Biden’s uncertainty about fiscal position directs investors to the security of fixed-income government bonds. America The 10-year T Bond has a yield …
Project Funding Guide from the European Recovery & Resilience Fund
Both the European Recovery & Resilience Fund and the Recovery and Resilience Facility mechanism were set up to upgrade the production model of the EU member-countries. Addressing at the same time the challenges posed by pandemic Covid-19 response measures. It is certain that the rapid provision of financing from this fund to productive investments will …
Inflation is Dynamically Back
Households and businesses in both the EU as well as in the US are now under strong inflationary pressures. The increase in inflationary pressures is directly related to the course of the pandemic. During 2020 because of the restrictive measures to tackle the pandemic Covid- 19 inflation fell. In the context of the international economic recovery, prices are rising …
When Real Interest Rates Are Lower Than Growth Rates Help Reduce Public Debt
After the end of World War II, short-term interest rates in the US were less than 1%, while T-Bond bonds with 10-year maturity yielded about 2% (https://www.govinfo.gov/content/pkg/ERP-2012/pdf/ERP-2012-table73.pdf) with the US Federal Reserve, the Fed directly purchases Federal Government bonds from the US Treasury Department. At that time (1946) the US national debt reached 119% of …
Boosting Inflation in the EU is Accelerating the Implementation of New Fiscal and Monetary Policies
Both the ECB and especially the governments of the EU member states must deal with two serious issues after the further strengthening of inflation in the Eurozone. The pressure that is already being exerted and will continue to be exerted most strongly on the actual disposable income of households. In weakening the competitiveness of companies …
Commodity Prices Have Exceeded Pre-Pandemic Covid-19 Levels
All commodity prices are now above pre-Covid-19 levels. This is mainly due to pre-pandemic oversupply demand, further declining industrial productivity, supply chain problems, rising shipping costs and incessant demand from China. In the chart below we see the prices on a quarterly basis for WTI Crude Oil, corn, and Lean hogs with the sample starting …