Day: March 16, 2021


Focus: Money and Inflation

  • Money growth has surged in most economies, the result of aggressive quantitative easing.
  • If money growth is a harbinger of inflation, that would be concerning.
  • In high-inflation 1970s and 80s, money growth was believed inevitably to cause inflation.
  • However, experience since 2000 does not seem to support that view.
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Can Argentina End Up In Another Debt Restructuration?

Editorial: Can Argentina End Up In Another Debt Restructuration?

With Argentine bond yields approaching 20% a year, some begin to wonder if Argentina will have to restructure its debt again, despite the fact that the agreement with bondholders was closed just six months ago.Read the rest


GERMANY: Beyond the conservative candidature conundrum

  • After Sunday’s regional elections, the pressure on Christian Democrats (CDU) leader Armin Laschet has increased.
  • However, he remains unlikely to renounce the Christian alliance’s (CDU/CSU) chancellor candidacy for CSU leader Markus Soeder.
  • With a view to business implications – from fiscal to regulatory policies – the most important factor will be the Greens’ role in coalition politics beyond the center-right.
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Emerging Markets

INDIA: Spike in infections raises economic concerns

Prime Minister Narendra Modi has called for an urgent meeting of chief ministers of all states on 17 March to address the sudden increase of Covid-19 cases across the country. The number of new cases has risen dramatically in Maharashtra, Punjab, Karnataka, Gujarat, and Tamil Nadu.Read the rest


SLOVAKIA: Government crisis escalates: Potential scenarios

Prime Minister Igor Matovic (Ordinary People and Independent Personalities, OLaNO) is facing growing pressure to resign from two of the governing coalition parties. While Matovic’s resignation would help keep the four-party coalition intact, it is unclear whether he is willing to sacrifice his post.… Read the rest