The Fed is not changing its ultimate mandate, which is to balance price stability with maximum employment. But it has announced that it will no longer preemptively slow down the economy if the labour market begins to look tight and it will treat its 2% inflation target as an average. Given many years of low inflation, the Fed will now tolerate an equivalent period of higher inflation to make up for the difference. Fundamentally, the Fed is acknowledging that the bargaining power of labour is far lower than in the 1970s and the risk of an inflationary blowout remote. … [Read more...] about The world’s central banks are starting to experiment. But what comes next?
Yemeni leader relocates central bank blow rebels
Speaking on the City AM podcast, Haldane added his voice to the Bank of England governor, Andrew Bailey, who said last month that the chancellor, Rishi Sunak, should “move forward” to the next stage of government support rather than extend the furlough scheme. … [Read more...] about Bank of England’s top economist warns against furlough scheme extension
McDonnell was making the same argument during last year’s general election campaign but nobody was really listening then. Now they are. The International Monetary Fund is calling for a green, inclusive recovery. The Paris-based Organisation for Economic Co-operation and Development will next week publish a report written by one of Brown’s former special advisers, Michael Jacobs, on behalf of an advisory panel including the chief economist of the Bank of England, Andy Haldane; Robert Skidelsky, the biographer of Keynes; and Mariana Mazzucato, a professor at University College London. … [Read more...] about Covid-19 drives leaders to make unprecedented interventions but what next?
Fraser said: “I am honoured by the board’s decision and grateful to Mike for his leadership and support. We will invest in our infrastructure, risk management and controls to ensure that we operate in a safe and sound manner and serve our clients and customers with excellence. … [Read more...] about Citigroup becomes first big Wall Street bank to be run by female CEO
The German chancellor knows the stakes are high and time is short. Her finance minister, Wolfgang Schäuble, told the Sunday paper Frankfurter Allgemeine Sonntagszeitung that "there is a high risk that the crisis will grow more acute and spread further". One countermeasure that therefore has to be in place, he was quoted as saying, must be "to make sure that the banks have sufficient capital". … [Read more...] about France and Germany agree plan to recapitalise European banks