“The longer the lockdown lasts, the more likely it is that there will be changes in consumer tastes, changes to production techniques and supply chains, and we will build more capacity for emergencies into health systems,” says Paul Tucker, former Deputy Governor of Bank of England
We should not compare today’s crisis to the previous one, says Paul Tucker, former Deputy Governor of Bank of England. And what central banks are doing is, according to him, not business as usual but they have a reason: a crisis threatening survival.
Fitch expects Poland’s economic growth to ease to 1.8 per cent in 2020 from a previous forecast of 3.3 per cent. A V-shaped recovery should follow in 2021, however, with the economy expanding 3.2 per cent driven by personal consumption and investment rebound.
New expansionary monetary and fiscal policies have been introduced in Poland to deal with the crisis due to the COVID-19, but with limited fiscal space a key question is how much the currency may depreciate.
Croatian economy is especially prone to international shocks. Dramatic spread of coronavirus, followed by drastic fall in supply&demand chains badly affected Croatian economy, which did not even have enough time to recover fully from the 2008 financial crisis and the 2017 Agrocor crisis.
As Covid-19 spreads, causing more countries to take counter-measures, Central and Southeast Europe is no exception. ING’s latest report said that collectively it is downgrading the 2020 GDP outlook on the back of...
After a year of panicky anticipation of a new recession scheduled for 2020 in Europe, on the brink of this fateful year, when only a little more patience had to be tolerated for a new economic drive, the consensus among economists and analysts had changed.
The inflation targeting strategy has been pursued worldwide for 30 years, and has become one of the most widely used monetary policy regimes. According to this strategy the inflation target communicated to the public is the nominal anchor for inflation expectations.
At a time when many central banks conduct a monetary policy based on near-zero or negative policy rates, expectations — not only of future interest rates, but also inflation — are playing an increasingly significant role. Central bankers want to affect consumers’ inflation expectations.
The US Secretary of the Treasury Steven Mnuchin suggested in Davos that imposing a digital tax in Europe may result in customs duties imposed on European cars. In addition, the future of Asia was discussed as well as the role of central banks in the world of negative interest rates.
