The Fed’s dangerous experiment, China’s global financial footprint, and more
THE WEEKEND REVIEW – OMFIF
Latest opinion and analysis from OMFIF around the world21-25 June 2021, Vol.12 Ed.25
The Fed’s dangerous experiment:
Consumer prices in the US rose by 5% in the year to May 2021, according to the Bureau of Labor Statistics. As a significant talking point for financial markets and policy-makers, inflation is back. The Institute of International Monetary Research has been warning about inflation risks since March 2020, highlighting the explosion in money growth. But economists who ignore money in their inflation analyses may be unduly complacent in believing that upward pressures on prices will soon evaporate, write Juan Castañeda and Tim Congdon.
China’s global financial footprint:
Most statistical data on China’s global financial presence only include residential transactions. China’s offshore activities are not taken into account when looking at the country as a global player. In the absence of a Chinese effort to get to grips with their international financial activities, the world needs to collect more data, writes Herbert Poenisch. Read more.
Fed week: Rebuilding sustainably and equitably:
In session four of OMFIF’s Fed week series, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, and Patrick Harker, president of the Federal Reserve Bank of Philadelphia, cover how we build a society that delivers on the promise of equal opportunity, inclusive success and more. Watch.
Euro area financial stability in the Covid-19 recovery:
Pedro Duarte Neves, alternate chairperson of the European Banking Authority from 2013-18 and senior adviser of the board of directors of Banco de Portugal, joins OMFIF’s Ellie Groves to discuss the economic position of the euro area and differences between countries and sectors. Listen.
South Africa unearths hidden strengths during pandemic:
This October, OMFIF and ABSA launch the fifth edition of the ABSA Africa Financial Markets Index. South Africa, the index’s top scorer, is steering through the Covid-19 crisis better than initially expected and is projected to experience a robust recovery in 2021, writes Natalia Ospina. Read more.