Mohamed El-Erian, chief economic adviser to Allianz SE and columnist for Bloomberg Opinion, wrote on Twitter that the two largest economies in South America are not in a position to make the idea succeed given their current conditions and that the implementation of a common currency is “far from likely”. John Barrearan economist at the […]
Tag: Mohamed El-Erian
Mohamed El-Erian: Fed faces self-created political dilemma
The Federal Reserve is in a deep self-made hole as its top policy committee meets this week to announce the start of a long-awaited cycle of interest rate hikes. Inflation is at its highest point in 40 years and continues to accelerate, the Fed’s credibility in fighting inflation is damaged and it has lost control […]
When will the effect of monetary adjustments be felt?
By Mohamed El-Erian There is no doubt that developed countries will withdraw in the first half of 2022, albeit partially, the ultra-stimulant monetary policies that they have been applying in recent years. What is more important, though less certain, is when and how this will lead to a significant tightening of financial conditions and what […]
Mohamed El-Erian: Fed takes a positive turn, but needs to be done
This new measure goes double-tailed: some perceive it as a tough-minded turn from the Fed, and others as a big reset. In just one meeting, the Federal Reserve’s policy committee abruptly dropped its characterization of inflation as “transitory” to label it as the “enemy # 1” of economic recovery. This change, although seemingly abrupt and […]