Central banks, the most reliable group of bond buyers in developed economies, could cut their purchases of sovereign debt next year by as much as $ 2 trillion in the world’s four major advanced economies, implying a potentially large increase in the borrowing costs of many states. For years, but especially since the COVID-19 pandemic […]
Tag: Inflation
ECB governors want inflation risks to be better recognized
Policymakers at the European Central Bank (ECB) sought greater recognition of inflation risks during their meeting last week, but were snubbed by the bank’s chief economist, Philip Lane, in an unusually intense debate, sources told Reuters. Central banks around the world, including the Federal Reserve (Fed) of the United States, have recognized that inflation may […]
Neither aggressive hike can calm inflationary fears in Mexico
The surprising and audacious rate hike Mexico was not enough to convince investors that the central bank will be able to control the inflation. That should help the weight maintain its attractiveness. The nation’s two-year breakeven remains above the official inflation target range of 2% to 4% even after Banxico, as the central bank is […]
Climate change, inflation and shortages endanger the famous French mustard
Mustard grains suffer from climate change, the price of white wine, glass and cardboard is skyrocketing and supply problems are increasing around the world. The combination of all these factors strongly punishes the famous French Dijon mustard. “In 2021-2022, mustard seed production is estimated to have fallen 28%” in Canada, the world’s largest producer, according […]
ECB “hawks” warn against inflation complacency
Updated on 12/17/2021 08:54 am The European Central Bank (ECB) could be underestimating inflationary risks, said several conservative authorities, a few hours after the entity extended the stimulus measures that will continue to drive pressure on prices. Inflation has beaten even the most pessimistic forecasts in recent months and the ECB nearly doubled its projection […]
Inflation helps with the burden of global debt
High inflation rates are not bad news for everyone. They can be useful to debtors, which in today’s world economy means almost everyone. In the second quarter of this year, indicators of household and corporate debt as a percentage of economic output reflected some of the steepest falls in several advanced economies, according to data […]
Does inflation hit the poor more than the rich?
Por Tyler Cowen As inflation rises at its fastest pace in four decades, economists debate which group suffers the most: the poor or the rich? This type of question is not an easy one to answer, especially when inflation rates have been so low of late and hard data so scarce. It is also not […]
Inflation hits Latin America and rekindles the ghosts of old crises
Inflation hit Latin America in 2021 like no other region, leaving its largest economies, Brazil and Mexico, with their highest rises in years, and exacerbating long-standing price problems in countries like Argentina. Latin America will close the year as the region with the highest price increase in the world, according to the International Monetary Fund […]
Argentines have advice for Americans affected by inflation
For many Americans, the sudden burst of inflation that has rocked the economy has been disorienting. Consumer prices have been so stable for so long in the United States that the population is a bit rusty with the basic tactics of the inflationary era. So for advice, we turned to people who have become experts […]
Consumers in the US see inflation rise in the short term at twice the wage increases
Updated 12/13/2021 03:08 pm US consumers’ short-term inflation expectations rose in November and future earnings growth expectations fell, suggesting they expect price hikes to outpace wages at an even faster pace in the near term, according to a poll released Monday by the New York Federal Reserve. Prices for food and other goods are rising […]