Tag Archives: economy

Zombies will prevent interest rates from rising too high

For those who are afraid of zombies, the Bank for International Settlements (BIS) has some bad news: they’re on the rise. What’s more, many people may be working for zombies.

But on the flip side, zombies may spook central banks enough that they don’t raise interest rates too high.

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The ‘Brexit divorce bill’ will be the easiest to agree upon

As we are about to hear again that there has been insufficient progress in the talks between Britain and the European Union, it becomes clearer that there never can be enough progress. The Brexit that Britain seeks simply does not exist.

Tolstoy’s famous quote about unhappy families offers a very good explanation as to why: “All happy families are alike; each unhappy family is unhappy in its own way.”

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UK household wealth growth about to make a U-turn

The Bank of England has reason to pat itself on the back. During the financial crisis of 2007-2009, things could have taken a very ugly turn if it hadn’t cut interest rates to record lows and hadn’t started printing money.

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As Brexit bites, there is little the Bank of England can do

The Bank of England will publish its inflation report next Thursday, and this time it will get even more attention than usual.

Brexit is being felt in prices more and more now, with the cost of grocery bills jumping and prices for essentials going up. The phenomenon of “shrinkflation” is in full swing as well; many products are mysteriously losing weight, but maintain their price.

No matter how much it would like to help (or to meet its inflation target), the Bank of England cannot do anything to prevent prices from rising. In fact, to be more accurate, it could, but it will not. The central bank could raise interest rates, stopping the pound’s depreciation — but if it does this, the housing market would crash.

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Home price inflation keeps going, deepening inequality

The financial repression that central banks started after the global financial crisis of 2007-2009 does not seem to be close to an end. The central banks argue that inflation has not come back to their target of around 2%, but their definition of inflation is flawed.

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More Europe, or no Europe: the time to decide is now

Europe has been through a very rough patch since the financial crisis of 2007-2009, but the real danger for the European Union and the eurozone is still very present. In order to save the EU, Europeans will have to get even closer.

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What religion can teach us about business management

— This article was originally posted in Youth Ki Awaaz, India

By Sourajit Aiyer

One advantage of being an Indian is that one gets to see multiple faiths and religions in close proximity. But the world of our religions often looks very distant from the world of our business.

Many perceive business to be pragmatic and religions to be emotional and that the two do not really intersect. But the texts of various religions actually have a lot of pragmatism, which has a lot to teach modern business management. Here are some of these teachings:

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A research paper supports the idea of debt forgiveness

If you’re like me, you’ve certainly wondered why economic growth has been so sluggish after the worst post-war recession — the Great Recession, or Great Financial Crisis as some have callednthe 2007-2009 crisis. Normally, the economy should have surged, after such a deep slump.

Instead, we’re proud of economic growth figures around 2% in Britain and the US and cheer when the eurozone posts a meager GDP advance of above 1% almost a decade after the crisis.

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The media crisis could bring the end of democracy

This has been a year when the world’s values changed in ways many people would have believed impossible. The Brexit vote was a vote for disintegration and isolation, rather than integration and cooperation. Hot on its heels came the election of Donald Trump as president of the United States.

Both votes prove that public opinion is turning away from the liberal values that seemed, only at the beginning of the year, to solidly anchor the Western world. What it is turning towards definitely looks like a not-so-liberal, not-so-tolerant version of democracy.

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The mood on Brexit is souring into 2017

If you’re curious what the new year has in store for Britons, all you need to do is look at the latest opinion surveys to realise the mood on Brexit is souring.

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