Reports on Federal Reserve See all →
Fast growth in 2021, but not for everybody
Causes and consequences of the dollar’s weakness
At the pandemic’s onset, few paid any attention to exchange rates. The U.S. dollar has weakened significantly since March 2020, surprising many observers. Some of the drop can be ascribed to the diminished international trade flows, which cut the demand for the globe’s leading exchange currency. There may also be, ...
Capping dividends and stopping buybacks: Governments want pessimism
Through its policies, the U.S. Federal Reserve is implying that the banking sector is in danger. By curbing dividends and prohibiting buybacks, it will force banks to accumulate large amounts of cash, insulating them against bank runs that may never come. In fact, the likeliest outcome is that U.S. banks ...
GIS Dossier: Beyond the pandemic – the economics
Six months into 2020, the effects of the Covid-19 crisis on the global economy are becoming clear. Not only has it disrupted supply chains and upended long-standing industry alliances, it has reinforced governments’ spendthrift habits and central banks’ tendency to print money. GIS experts have offered their analysis and predictions ...
COVID-19 and the future of central banking
As the coronavirus pandemic freezes large swaths of the economy, the world’s three most important central banks find themselves under tremendous political pressure to flood the markets with easy money again. Their approaches may prove significantly different.