Can Digital Cash Make Inflation Worse? | Asharq AL-awsat
Middle-East Arab News and Opinion - Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities
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Middle-East Arab News and Opinion - Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities
Inflation is coming. Or wait, it’s already here. Bond investors are looking at the 4.2% annual rate that U.S. consumer prices jumped to in April and wondering if it’s all because of depressed levels from last year. Could it be that the Federal Reserve is wrong about higher prices being transitory? In that case, the Fed and other central banks may have to rethink, among other things, their space-race-type competition to offer digital cash. It’s a project best undertaken after price pressures have eased, and the vast pools of excess liquidity to fill the gaping economic hole left by the...
The Globe and Mail Chris Flood Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account Getting audio file ... This translation has been automatically generated and has not been verified for accuracy. Full Disclaimer Chris Wattie/Reuters Signs that inflation is making a comeback are unsettling big investors. Past periods of high inflation have weighed heavily on real returns from stocks and bonds, which have flourished over the past decade when inflationary pressures have generally remained muted. But inflation forecasts are now...
The Globe and Mail Chris Flood Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account Getting audio file ... This translation has been automatically generated and has not been verified for accuracy. Full Disclaimer ALY SONG/Reuters Assets under management in China’s mutual fund industry surged 48 per cent to a record US$3.1-trillion in 2020, but huge demand for new funds is stoking fears that volatile investor inflows could spur a stock market bubble. China is expected to develop into the world’s second-largest asset manag...
Dec 17, 2020 China’s central bank is striking out on its own with signals of tighter monetary policy, widening a divergence with other large economies that will shape global capital and trade flows next year. With most of the world’s major nations still battling the pandemic and struggling to recover from deep recessions, China’s economy is on track to grow by about 2% this year and more than 8% in 2021. That’s allowing People’s Bank of China Gov. Yi Gang to turn his attention to a record debt burden, an issue that’s come into sharp focus following a spate of corporate de...