2019-12-28 09:36:00 Sat ET
treasury deficit debt employment inflation interest rate macrofinance fiscal stimulus economic growth fiscal budget public finance treasury bond treasury yield sovereign debt sovereign wealth fund tax cuts government expenditures
Global debt surges to $250 trillion in the fiscal year 2019. The International Institute of Finance analytic report shows that both China and the U.S. account for at least 60% of this sharp increase in global debt. In particular, global public debt increases from $65 trillion to $70 trillion in 2019, and this increase arises primarily from the recent surge in U.S. federal debt. This latter public debt accumulation results from the recent Trump tax cuts and infrastructure expenditures.
Meanwhile, the current low-interest-rate environment makes it extremely easy for public corporations and sovereign wealth funds to borrow more money worldwide. Total government debt represents more than 2.5 times annual real GDP in China. Low long-run government bond yields and high corporate debt mountains continue to be red alerts for the next recession in several economies such as Britain, France, Germany, Japan, Italy, and Spain. The monetary authority cannot sustainably fund fiscal deficits via new public bond issuance without an eventual increase in money supply growth or price inflation. When push comes to shove, an inflationary shock above the 2% target may tilt the central bank response toward a hawkish monetary policy emphasis on price stabilization.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-05-03 11:29:00 Friday ET
Key tech unicorns blitzscale business niches for better scale economies from Uber and Lyft to Pinterest, Slack, and Zoom. LinkedIn cofounder and serial entr
2023-06-21 12:32:00 Wednesday ET
Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism. Michael Sandel (2013) What money
2019-12-25 19:46:00 Wednesday ET
Former White House chief economic advisor Nouriel Roubini discusses the major limits of central-bank-driven fiscal deficits. The International Monetary Fund
2018-11-19 09:38:00 Monday ET
The Trump administration mulls over antitrust actions against Amazon, Facebook, and Google. President Trump indicates that the $5 billion fine against Googl
2020-02-12 09:31:00 Wednesday ET
Mark Zuckerberg develops Facebook as a social network platform to help empower global connections among family and friends. David Kirkpatrick (2011) T
2019-07-21 09:37:00 Sunday ET
Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce. Libra will be available to all the 2 billion active users on Fa