U.S. economy accelerates in first quarter; jobless claims edge lower
U.S. economic growth accelerated in the first quarter, fueled by massive government aid to households and businesses, charting the course for what is expected will be the strongest performance this year in nearly four decades. Gross domestic product increased at a 6.4% annualized rate last quarter, the Commerce Department said on Thursday in its advance […]
Pitfalls of average inflation targeting when agents have imperfect knowledge
Recent challenges have generated interest in new monetary policy frameworks, including average inflation targeting. The Federal Reserve adopted this policy in 2020, but they have not communicated many details about the policy itself. This column argues that an opaque average inflation targeting policy can de-anchor inflation expectations from the target equilibrium – even if expectations are initially well-anchored. Policymakers should be cautious when implementing average inflation targeting.
Foreign currency corporate borrowing: Risks and policy responses
Emerging market economies increasingly rely on foreign currency debt, leaving borrowing firms exposed to sudden stops and currency depreciations. This column examines the dynamics of corporate foreign currency borrowing in India using new firm-level data. It finds that interest rate differentials are a strong predictor of foreign currency debt issuance, particularly after the Global Crisis. After the ‘taper tantrum’ of 2013, the Reserve Bank of India introduced new macroprudential policies that were effective at mitigating the riskiest borrowing and reducing the vulnerability of Indian firms.
Smaller economic stimulus payments could boost consumer spending more
What is the consumption response to unexpected transitory income gains of different size and what are the aggregate demand implications of stimulus packages that target different segments of the population? This column explores these questions using responses to hypothetical questions in the Italian Survey of Household Income and Wealth. Families with low cash-at-hand display a higher marginal propensity to consume out of small gains, while affluent households exhibit a higher marginal propensity to consume out of large gains. For a given level of public spending, a fiscal transfer of a smaller size paid to a larger group of low-income households stimulates aggregate consumption more than a larger transfer paid to a smaller group.
Britain’s Prince William and Kate mark 10th wedding anniversary with video
Britain’s Prince William and Kate, the Duke and Duchess of Cambridge, celebrated 10 years of marriage on Thursday with a video of the couple and their children enjoying the countryside. William, the Queen’s grandson and second in line to the throne, married Kate on April 29 2011 in Westminster Abbey in a ceremony watched by […]
Moderna boosting COVID-19 vaccine capacity, targets up to 3 billion shots in 2022
Moderna Inc (MRNA.O) said on Thursday it is boosting manufacturing capacity for its COVID-19 vaccine and expects to make up to 3 billion doses in 2022, more than twice its previous forecast. It also said it is increasing its expectations for 2021 vaccine production to between 800 million and 1 billion shots, raising the bottom of its range from […]
Class of COVID-19: Next generation of bankers fear for future
The stage fright of walking into the imposing offices of a $607 billion asset manager in the heart of a historic financial district? Pandemic era: a five-day induction on Microsoft Teams.
London Heathrow Airport’s COVID losses balloon to $3.4 bln
Heathrow, Britain’s biggest airport, said on Thursday a first quarter loss of 329 million pounds ($459 million) took total losses since the start of the pandemic to nearly 2.4 billion pounds as travel continues to be hammered. It said only 1.7 million passengers travelled through the London airport in the three months to March 31, […]
Biden pleads for unity, warns of Chinese threat, in speech to Congress
President Joe Biden proposed a sweeping new $1.8 trillion plan in a speech to a joint session of Congress on Wednesday, pleading with Republican lawmakers to work with him on divisive issues and to meet the stiff competition posed by China.
Is AstraZeneca PLC’s COVID-19 vaccine safe?
In response to reports that a woman died of an unusual blood clot after being vaccinated, Justin Trudeau said on Wednesday that AstraZeneca PLC’s COVID-19 vaccine is safe and that Canadians must have faith in it. According to reports, Francine Boyer, 54, would be the first Canadian to die as a result of the AstraZeneca vaccine. During an interview, her spouse stated that she received a shot on April 9 and died on April 23 in a hospital where she had been treated for fatigue and migraines. Trudeau, who received […]
