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TOPIC: economics

Economy

Inflation And Political Interference: 2023 Is A Minefield For Central Banks

As recession predictions abound, stakes are higher than ever for the number crunchers at the world's top central banks, who must also contend with the whims of the political class.

Some of the world’s biggest economies — and their central banks — face a tricky task this year taming inflation via higher interest rates without triggering a recession.

And whether they like it or not, the U.S. Federal Reserve, the Bank of England and other central banks are now being thrust into the center of a political debate that could threaten their independence as well as their ability to act decisively to curb rising prices.

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It's Neoliberalism, Stupid: A Millennial's Plea To Break The Status Quo

I am part of a generation whose quality of life will be worse than those who came before us. This should encourage society to realize that the idea of infinite growth is a myth, and that time is of the essence when it comes to saving the environment.

-Essay-

Millennials (those aged roughly between 25 and 38) and others born after us will never be able to live better than our parents (or grandparents). There are those who will blame Netflix subscriptions or avocado toast as a pattern of expenses that, if avoided, would allow us in theory to buy a house. But the economic data is there and it doesn’t lie.

Economic growth has slowed down in a good part of the globe and, along with this, there has been a weakening of the welfare states in most Western countries. This has been coupled with a reduction in taxes for those who are the wealthiest, resulting in unprecedented wealth inequality.

Demonizing the leisure activities of the most precarious sectors not only demonstrates a conservative and prejudiced position but also a shameless ignorance in the face of a problem that has been studied by many experts.

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Didi, The Chinese Food Delivery App Finding Its Tasty Niche In Latin America

Didi Food, a delivery startup that struggled in East Asia, has found a growing market in Latin American cities, where appetite for home deliveries has yet to be fully satisfied.

SANTIAGO DE CHILEBarranquilla and Soledad are the latest Colombian cities to join the Chinese delivery firm Didi Food's expanding market in Latin America.

The firm began exploring partners here months ago, but announced its "arrival" online in late June once it had a critical mass of eateries and partners registered with it. The application is available in other Colombian cities, as well as in Mexico, Brazil, Costa Rica, Chile and the Dominican Republic.

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Why Inflation In Iran Is Hitting Even Harder

Inflation is nothing new in Iran. But its staggering rise is pushing millions of Iranians toward abject poverty.

-Analysis-

As inflation in Iran spikes to record heights, President Ebrahim Raisi and his Economy Minister Ehsan Khanduzi insist the government is working to curb the price hikes wreaking havoc on household budgets. Yet there is very little in Raisi's year-long record to indicate earnestness in getting a grip on inflation or mitigating its impact on the poor. The endemic inflation of the last four decades, and particularly the explosive inflation of the last three years, are forging a frightening picture of daily life for many Iranians.

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Economy
Sanjay Kathuria*

Pakistan And Sri Lanka Are Reminders Of The Political Power Of Economics

Both Pakistan's and Sri Lanka's leaders have resigned recently. Their fates should be a reminder to politicians in Asia and around the world: good economics might not be enough to get re-elected but bad economic decisions can hasten your fall.

On April 11, Shehbaz Sharif was sworn in as Pakistan’s new Prime Minister, following a no-confidence motion against the incumbent. A month later, in neighbouring Sri Lanka, Ranil Wickremesinghe took oath as Prime Minister, for the sixth time, after the incumbent resigned.

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In The News
Anne-Sophie Goninet, Bertrand Hauger and Laure Gautherin

Ceasefire Talks Fail, Maternity Bombing Toll, New S. Korean President

👋 Bok!*

Welcome to Thursday, where Ukrainian & Russian foreign ministers fail to reach a cease-fire agreement, at least three die in bombing of a maternity ward in Mariupol and South Korea’s opposition candidate wins an extremely close presidential election. Also, as the West bans Russian composers, artists and writers, Christian Meier in Die Welt, asks whether targeting culture is the right move in times of war.

[*Croatian]

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Economy
Jean-Marc Vittori

Pandemic To Putin, Rise Of The "Independence Obsession"

First, the COVID-19 crisis, and now the need to respond to Russia's invasion of Ukraine, are forcing countries to confront the risks of global interdependence. In its place comes a rush to establish national autonomy for crucial resources, from masks to oil and gas. But at what price?

-Analysis-

PARIS — Russian troops aren't only ravaging Ukraine. They're setting off shock waves that will change history. And it turns out, those waves are pushing us in the same direction that COVID-19 did: the fragmentation of the world.

Stay up-to-date with the latest on the Russia-Ukraine war, with our exclusive international coverage.

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Because when facing the assault of a virus or an army, nation-states are forced to take control.

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Economy
Jean-Marc Vittori

Vladimir Putin's Two Economic Bets

By deciding to invade Ukraine, the President of Russia did so believing that money would protect his country. By trying to prove him wrong, the West is facing its own potential crash.

-Analysis-

It is not the economy that wages war. It is primarily men, with weapons and ideas, visions and strategies.

Stay up-to-date with the latest on the Russia-Ukraine war, with our exclusive international coverage. Sign up to our free daily newsletter.

However, for more than a century, the economy has played an essential role in war development. Vladimir Putin knows this, even if he doesn't usually care much about the subject.

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Geopolitics
Ahmad Ra'fat

Out of Cash, Iran Puts Dream Of Shia Empire On Pause

Under sanctions and deprived of funds, Iran's clerical regime has placed its dreams of regional supremacy on hold, at least until it can reach a multilateral pact on its nuclear program.

-Analysis-

It has been two years since a U.S. drone strike on a convoy in Iraq killed the Iranian Revolutionary guards commander Qasem Soleimani and 10 others, including Abu Mahdi al-Muhandis, one of the heads of the Iran-backed militia, Hashd al-shaabi.

In spite of his efforts and backing from his government, Soleimani's successor as head of the Revolutionary guards' Quds force, Ismail Qaani, has failed to prevent the depletion of the Axis of Resistance.

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Economy
Manuel Romera Robles

China's Loose Credit Gambit

While other major economies are taking steps to tighten credit, China is acting to cheapen it, in order to revive its economic activity and help big firms repay their debts. But will it fuel global inflation, or worse, stagflation?

-Analysis-

It has recently become clear that Chinese economic growth is losing steam after a third consecutive negative quarter and a fragile 4.9% annual growth rate. This is starkly below China's average historical long-term growth rates and has depressed its stock market values. But China is not a country easily deterred by challenges and has decided to apply the principle that big problems need big solutions.

We are now seeing the world's economic blocks take drastically different approaches. The United States and Europe are envisaging restricting credit flows in the economy by raising interest rates, while China has chosen the opposite: pulling out all the stops to inject cash and increase liquidity.

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Geopolitics
Loris Zanatta*

Why Chile's Leftist Victory Is No Model For Other Progressives

The recent electoral victory of a youthful leftist in Chile has inspired the left in Latin America and around the world. But the country's unique political and economic history means it is not necessarily a model for the rest of the world.

-OpEd-

BUENOS AIRES —The "Chilean model" is back in vogue, following the left's recent electoral triumph in that country. The election in December of the youthful Gabriel Boric has inspired the left worldwide and positively fired up Latin America's socialists. It's all smiles and hugs right now.

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Economy
Thomas Straubhaar

The German Dream Is Alive And Well

Economic stagnation, a polarized society, politicians losing the plot – German citizens’ opinion of their country seems to be going downhill, and we're warned that many are planning to emigrate. However, the facts paint a very different picture.

-OpEd-

BERLIN — In Germany, debates over the state of the nation are heating up. Yet again. Those who see their homeland as an attractive country, who praise its society and government or admire its strong economy find themselves criticized, vilified and straight-out attacked on social media and in real life.

A growing section of the population believes that Germany’s politicians can do nothing right, that society is polarized and deeply divided, that we are on the precipice of years worth of stagnation and inflation. Predictions of an economic decline, perhaps even a collapse, are everywhere.

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