Turkish President Recep Tayyip Erdogan has fired three governors of the Turkish Central Bank since mid-2019 and is fighting high interest rates in every possible way, insisting on applying low interest rates to the Turkish economy to boost growth and investment. Its purpose is to avoid a giant tsunami of bankruptcies for both businesses and …
Category: Economics
Small and Medium Enterprise Empowerment Policies Against Competition
For the past two years, under the pressure of lockdowns brought about by the Covid-19 pandemic, the pressure of competition from multinational companies to small and medium-sized enterprises, shows that the only way to survive is through mergers. Small and medium-sized enterprises in Europe are those that operate with 1 to 50 employees. The governments …
The Global Economy is losing Momentum
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 …
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 …
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 …
ECB – Inflation Brings Changes to Monetary Policy
The ten-year record for euro area inflation – 3% in August from 2.2% in July and structural inflation (excluding energy and food) rose 1.6%, the highest since 2012 – is now key area of controversy and strong arguments for proponents of restrictive monetary policy. Their arguments are reinforced by the recently announced inflation in Germany …
The Ingredients for Economic Prosperity: Energy & Growth
One of the most important costs for the operation of a business and the entire market is the cost of energy, which together with other factors e.g., such as labor costs, etc., largely shape the final prices of the product and service produced respectively. The increased energy costs today, the global trend is to increase …
Why China Has a Difficulty Getting Rid of Coal
2020 was a milestone in increasing energy production in China. China has commissioned new lignite plants that produce a total of about 38.4GW of electricity. China is the country that builds factories to increase the use of lignite for electricity generation while at the same time as a country invests most of the capital in …