Keys of the week – 30 January 2023
Understand the macroeconomic events of the past week.The revival of the European cycle in spite of German fragility. The robustness of the French economy but a concern about real estate.…
Philippe Waechter's blog
Growth and inflation in China argue for a very accommodative monetary policy
The slowdown in growth and the very low inflation in China will lead to the implementation of a very accommodating monetary policy. This has already started and will continue throughout…
The Fed’s new monetary policy
At Jackson Hole, Jay Powell, the Federal Reserve Bank president, spoke of the new Federal Reserve monetary policy. The Fed will target long run inflation at 2%. On the long…
18 points for the post-vacation period
The world economy has staged a rebound since April’s lockdown, yet the recovery is not complete, and spending in the services industry is lagging very far behind with uncertainties on…
The ECB and its forecasts
The ECB has increased the size of the specific pandemic plan. The PEPP (Pandemic Emergency Purchase Program) which amount was 750 billion usable until December 2020 is increased to 1350…
The ECB is committed for 750 billion against the epidemic.
The ECB puts itself in front of the States which will sharply increase their public deficit in order to fight the epidemic. The program will thus reduce financial fragmentation and…
Again , the Federal Reserve slashes its interest rate
The risk associated with coronavirus has provoked the state of emergency declared by the White House, forcing the Fed to collapse its intervention rate. The fiscal policy will have to…
The global coming recession (What to expect this week)
The supply value chain is broken as a consequence of the Chinese containment. The recovery is slow and the epidemic is not over. Therefore, the global production will decrease. That’s…