Tag Archives: Inflation

How will the Fed normalize monetary policy post-taper?

As the Federal Reserve continues to reduce the pace of asset purchases, attention has turned to the impending rise in interest rates. But to control short-term rates, the Fed will need to rely on new tools. Ever since the Federal Reserve pushed interest rates down to effectively zero, the central bank has relied on large-scale […]

Continue Reading
rajan India central bank

Modi and Rajan face uphill battle with India’s growth and inflation

Given the potential conflict between Narendra Modi’s focus on growth and the Reserve Bank of India President Raghuram Rajan’s goal to curb inflation, both will need to work together to ensure a stable India. In the run up to Narendra Modi’s smashing victory in the Indian elections, rumors spread that the governor of the Reserve […]

Continue Reading
Simferopol referendum Ukraine Russia

Crimea annexation comes with host of problems for Russia

Russia will bear the brunt of recently annexed Crimea’s long-term economic, financial and political problems. President Putin made a triumphant visit to Crimea on the 9th May, as the region held its first Victory Day commemorations since being annexed by Russia. Mr. Putin extolled Crimea’s “return to the motherland” before tens of thousands of people. […]

Continue Reading
Uamsho Zanzibar Tanzania

Zanzibar’s stability key to preserving Tanzanian Union

April 26th, 2014 marked 50 years of the Union between the Republic of Tanganyika and the People’s Republic of Zanzibar. With Zanzibar’s demands for independence growing stronger, there was real concern across the nation about the potential for unrest. However, no violence was recorded. A Record number of Tanzanians congregated in Dar Es Salaam’s Freedom […]

Continue Reading

ECB and Germany must learn to love inflation for Eurozone to grow

Even though the Eurozone is teetering on the edge of deflation, the ECB will not lower its rates. The European Central Bank’s (ECB) message to markets in the last year has been clear: it will do anything in its power to stabilize the Eurozone. Anything, that is, except delivering on its inflation target. Eurozone inflation – […]

Continue Reading
student protests Chile

Latin American countries see rising public discontent

In most Latin American countries, people are taking to the streets to protest against their governments for a variety of issues. If public services and governance indicators do not improve, the demonstrations could take a violent turn and impede economic growth. Since late January 2014, Venezuela has held the spotlight in Latin America. Fast forward […]

Continue Reading
Janet Yellen (AP Photo/Mark Lennihan)

Yellen’s first statements chart clear path for Federal Reserve

The new Fed Chairwoman made clear to Congress that her Fed will focus on improving the labor market and being straightforward in its messaging. In her first major appearance since becoming the new Chairwoman of the Federal Reserve, Janet Yellen spent last Tuesday answering questions from the House Financial Services Committee. Although she had made abundantly […]

Continue Reading
Ghanaian President Mahama

Pressure mounts on Ghana’s government to address imbalances

Deteriorating twin deficits have put pressure on the government to adopt austerity measures. But risks of social unrest and reduced FDI may force authorities to moderate their rebalancing efforts. Although the Ghanaian economy is projected to grow at an annual average rate of 7.4% in 2014, redressing its aggravating macroeconomic imbalances poses significant risks. The […]

Continue Reading
Myanmar President Thein Sein

Growth in Myanmar undermined by rising inflation

McKinsey estimates that Myanmar’s GDP could quadruple in size to over $200 billion in the next 20 years. But inflation may derail the prospect of growth and progress. Myanmar’s political and economic liberalization has normalized diplomatic relations for the previously isolated country and significantly improved its economic outlook. Real GDP growth reached 7.3% in the […]

Continue Reading
Rio de Janeiro

What to watch for in Latin America in 2014

The relationship between Latin American governments and business in 2014 will be defined primarily by the interaction of democracy and natural resource economics. Here is an overview of key issues to watch. 1. Democracy: Seven presidential elections will be taking place in 2014 (Costa Rica, El Salvador, Panama, Colombia, Uruguay, Bolivia, & Brazil).  These presidential […]

Continue Reading