MACRO ECONOMIC NEWS

 Experience The Joy Within Conferring The Pleasure Out There. 

Wishing A Delightful Day Ahead.

 

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Arbind

 

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Macro-Economic News 04 Feb 2021

The cost of doing anything, even being probabilistically wrong, is lesser than the cost of not doing anything. The consequences may be significant if the target is Inflation or unemployment. The Council of Economic Advisers and others in the White House are ramping up its multi-trillion dollar efforts to rescue the economy – including raising the minimum wage to $15, sending $1,400 cheques to select groups of individuals, among other measures. This quick helping people survive financially is expected to avert the risk of persistent unemployment.

India certainly walks the Growth path with a Smile. Its January services PMI expands for a fourth straight month while Indian corporate external borrowing is down by 40% in the Apr-Dec 2020. With an emphasis on spending for reviving growth – comfort for the central bank, the RBI monetary policy will have more room in support. With the expansionary budget already in place, the central bank may keep its policy rate unchanged and keep monetary-tools reserved in its quiver.

The Eurozone Inflation has leaped up the quickest in a decade following the uncertainty about the extra stimulus measures by the ECB. Former ECB chief accepts the task of reviving Italy – on the line of his nickname ‘Super Mario’ – by forming the government as a savior. On the other side, Chinese firms have defaulted on either interest or principal on their offshore bonds that is nearly 33% of the 2020s and 70% of 2019's total; the trend appears to continue this year.

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