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 …
Eight Consecutive Months of Profits for the Stock Exchanges of the Planet
Corrections ended in European markets after the end of the summer, due to restrictions on investor expectations from the news of inflation in the Eurozone, which broke a record of a decade (please read the analysis entitled «ECB – Inflation Brings Changes to Monetary Policy»). However, despite any corrective moves, the main European stock indices …
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 …