The dire state of the labour market requires a major support effort for the economy. This view is shared by Fed Chairman Jerome Powell and Treasury Secretary Yellen. The massive fiscal stimulus plan prepared by the Biden administration has received criticism from prominent economists. They argue that the plan is too big and could trigger a sizeable increase in inflation. In deciding on the size of the fiscal plan, risk management considerations play an important role. Doing not enough is clearly the greater risk. However, doing a lot will eventually force the Federal Reserve to demonstrate its independence by not shying away from raising rates despite the impact on government finances.
Even as the Covid-19 pandemic spreads to more victims than ever in the United States, there have never been such high hopes for a recovery. With the number of deaths averaging nearly 3000 a day since January 15 – 50% more than during the April 2020 peak – the health situation remains persistently bad. Yet vaccination campaigns are also accelerating...
The World composite purchasing managers’ index has been in a narrow range since August last year. At 52.3, it is still comfortably above the 50 mark, although it has been trending down since the peak of 53.3 reached in October. However, the dynamics at the country level are very heterogeneous...
The rollout of the vaccination process is vital for the economies to go back to normal again. According to the latest figures available on Oxford University’s Our World in Data website, 152 million doses of Covid-19 vaccines were administered in 73 countries, adding 72 million doses and 9 countries up to 10 February...
