The monetary illusion of inflated prices must evaporate. Returns will fall short of expectations, firms will liquidate investments, shedding jobs. The boom turns into a bust. Then the central banks rush in to lower interest rates and pump in new money. The economy gets trapped in the boom-and-bust cycle.
Russia recorded only a 0.1% growth in prices in March, bringing the annualised rate of inflation at the start of April down to 4.3%.
This is far better than even the most optimistic forecasts of just a few weeks ago. Last year the Central Bank was forecasting that inflation would be running at an annualised rate by the end of April.
A few weeks after the Russian Central Bank indicated that it was unlikely to cut its key rate before mid year, a cluster of good economic news have caused it to shave its key rate down today from 10% to 9.75%.
To be clear, this is a token cut that will not by itself make any difference to the state of economy. Its importance is that it clearly signals that more cuts are on the way. That may in itself act as a spur to growth, consolidating the recovery.
(RPI) In her recent address at the Jackson Hole monetary policy conference, Federal Reserve Chair Janet Yellen suggested that the Federal Reserve would raise interest rates by the end of the year. Markets reacted favorably to Yellen’s suggested rate increase.
The euro reacted to the ECB’s announcements on Thursday by rising to its highest position against the US dollar in two weeks [Xinhua]
The euro hit a two-week high against the US dollar late Thursday after the European Central Bank (ECB) agreed to keep it’s current stimulus (quantitative easing) program as is with no change.
Just ahead of markets closing in Europe on Thursday, the euro rose 0.67 per cent to 1.134 against the dollar.
Many see families in poverty and seek to help. Others see families in poverty and see opportunities for profit.
Here are six examples of billion dollar industries which are built on separating poor people, especially people of color, from their money, the reverse Robin Hood.
Check Cashing Businesses
Meet the “Emerging Market” Superstars of Global Economic Governance, Part II
