Showing posts with label Macro Demystified.   Show all posts

Chart of the day…. or century?

Posted by at 10:36 AM

Labels: Macro Demystified

Top Ten Posts of 2018

Posted by at 9:39 AM

Labels: Macro Demystified

Top charts of 2018

From Economic Policy Institute:

“Twelve charts that show how policy could reduce inequality—but is making it worse instead

With the unemployment rate at 4 percent or below for eight consecutive months, 2018 appears to be the year when the economy finally became healthy again. But while low unemployment is good news, it doesn’t tell the whole story of how typical families are faring in the current economy.

As the economy normalizes following a long, slow recovery from the Great Recession, we are quickly resuming our prerecession course of rising inequality. The fruits of economic growth are bypassing typical families and going straight into the hands of the already-rich.

Our current policy trajectory is doing nothing to reverse the trend of inequality. But it’s doing plenty to widen it. This year’s edition of Top Charts highlights how policy choices continue to exacerbate inequality and how we can achieve more broadly shared prosperity through better policy choices.

 

 

Continue reading here.

From Economic Policy Institute:

“Twelve charts that show how policy could reduce inequality—but is making it worse instead

With the unemployment rate at 4 percent or below for eight consecutive months, 2018 appears to be the year when the economy finally became healthy again. But while low unemployment is good news, it doesn’t tell the whole story of how typical families are faring in the current economy.

As the economy normalizes following a long,

Read the full article…

Posted by at 12:07 PM

Labels: Macro Demystified

China’s High Savings: Drivers, Prospects, and Policies

From a new IMF working paper by Longmei Zhang, Ray Brooks, Ding Ding, Haiyan Ding, Jing Lu, and Rui Mano:

“China’s high national savings rate—one of the highest in the world—is at the heart of its external/internal imbalances. High savings finance elevated investment when held domestically, or lead to large external imbalances when they flow abroad. Today, high savings mostly emanate from the household sector, resulting from demographic changes induced by the one-child policy and the transformation of the social safety net and job security that occured during the transition from planned to market economy. Housing reform and rising income inequality also contribute to higher savings. Moving forward, demographic changes will put downward pressure on savings. Policy efforts in strengthening the social safety net and reducing income inequality are also needed to reduce savings further and boost consumption.”

From a new IMF working paper by Longmei Zhang, Ray Brooks, Ding Ding, Haiyan Ding, Jing Lu, and Rui Mano:

“China’s high national savings rate—one of the highest in the world—is at the heart of its external/internal imbalances. High savings finance elevated investment when held domestically, or lead to large external imbalances when they flow abroad. Today, high savings mostly emanate from the household sector, resulting from demographic changes induced by the one-child policy and the transformation of the social safety net and job security that occured during the transition from planned to market economy.

Read the full article…

Posted by at 7:15 AM

Labels: Macro Demystified

Media Sentiment and International Asset Prices

From a new IMF working paper by Samuel P. Fraiberger, ; Do Lee, Damien Puy, and Romain Ranciere:

“We assess the impact of media sentiment on international equity prices using more than 4.5 million Reuters articles published across the globe between 1991 and 2015. News sentiment robustly predicts daily returns in both advanced and emerging markets, even after controlling for known determinants of stock prices. But not all news-sentiment is alike. A local (country-specific) increase in news optimism (pessimism) predicts a small and transitory increase (decrease) in local returns. By contrast, changes in global news sentiment have a larger impact on equity returns around the world, which does not reverse in the short run. We also find evidence that news sentiment affects mainly foreign – rather than local – investors: although local news optimism attracts international equity flows for a few days, global news optimism generates a permanent foreign equity inflow. Our results confirm the value of media content in capturing investor sentiment.”

From a new IMF working paper by Samuel P. Fraiberger, ; Do Lee, Damien Puy, and Romain Ranciere:

“We assess the impact of media sentiment on international equity prices using more than 4.5 million Reuters articles published across the globe between 1991 and 2015. News sentiment robustly predicts daily returns in both advanced and emerging markets, even after controlling for known determinants of stock prices. But not all news-sentiment is alike.

Read the full article…

Posted by at 10:01 AM

Labels: Macro Demystified

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