Tag "deflation"
US: Inflationary pressures are highly unlikely
As a response to the Covid-19 outbreak, the United States unveiled a $2 trillion package in March – the largest of its kind. Aside from the expansion of debt, potential inflation has been a cause for concern. But several factors ensure that broad inflationary pressures will almost certainly be absent during the lockdown, and, likely, in the immediate period after.
Interest rates dip below zero for first time in Japan
The concept of negative rates that originated in Europe has now spread east. Just as customers of commercial banks earn interest on funds deposited with these banks, commercial banks normally
Has Asia entered into a currency war?
With interest rates being cut by Central Banks all across Asia, many have predicted a looming currency war in the region. Has Asia already entered a currency war? And if
Greece and the EU on a collision course
The election of the anti-austerity Syriza party in Greece has raised the spectre of further instability in the European Union and heightens the possibility of a Greek exit from the
Will Draghi’s QE work?
The ECB finally launched a larger-than-expected QE programme last week, despite German opposition and Greek elections. President Mario Draghi hopes that it will revive the eurozone and rebut deflation. Several
Draghi risks becoming the Boy Who Cried Wolf over QE
Recent remarks by ECB President Mario Draghi have promised to tackle the near-recession level of activity plaguing the Eurozone. But while words have come often, there has been far less
6 reasons 2015 will be defined by market volatility
Markets spent most of 2014 calmly moving up, but 2015 may be a different story. Outside of a brief surge in volatility in October, markets were complacent throughout 2014. Even
How well could Draghi’s QE work?
Rates in European Countries are already at record lows, which could dampen the effects of ECB quantitative easing. After the European Central Bank (ECB) spent years of waffling over whether
Abenomics has a silver lining
Japanese GDP took another tumble in the second quarter, but Abenomics has not been for naught. Although Japanese GDP actually fell by less than analyst expectations in the second quarter,