How Wobbly Are the Finances of the World’s Major Governments?
James C. Capretta | Bulwark
As the world’s most powerful central banks adjust belatedly to the rapid acceleration of price inflation, it is worth comparing their fiscal situations to better anticipate what the coming months might hold for the global economy and for the politics of each of these countries. For many countries, the fiscal resilience trends look bad, says James C. Capretta.
Five Questions for Michael R. Strain on Inflation, Recession, and the Labor Market
James Pethokoukis and Michael R. Strain | @JimPethokoukis @MichaelRStrain | AEIdeas
What's driving inflation in the US economy? Are we teetering on the edge of a recession, and if so what would the recovery look like? Michael R. Strain and James Pethokoukis answer those questions and more and provide their insight into the economic outlook for the United States.
The Federal Reserve Is Creating A Deep Recession To Stop Inflation. That’s A Mistake.
Desmond Lachman | 19fortyfive.com
Shocking inflation numbers all but guarantee that the Federal Reserve will continue with its policy of aggressively raising interest rates and substantially reducing the size of its bloated balance sheet. Desmond Lachman says that this will raise the risk of a hard economic landing before year-end and further turmoil in financial markets.
The Economic Consequences of Jerome Powell
Desmond Lachman | National Review
Jerome Powell risks going down in history as the Federal Reserve’s worst chairman since the 1970s, Desmond Lachman says. He risks doing so by first having kept monetary policy too loose for too long as inflation quickly got out of control. He now risks allowing the same approach to cause him to slam on the monetary-policy brakes too hard to regain control over inflation.
As Turkey’s economic woes worsen, a new currency crisis is approaching
Turkey’s economic problems continue to go from bad to worse. Its foreign trade deficit has reached a monthly average of $8 billion this year. Amid the sharp rise in global energy prices this spring following Russia’s invasion of Ukraine, the country’s average gross energy imports shot up from $3-4 billion per month to $7-8 billion. A reduction in energy imports and the recovery of tourism this summer have not offset this, and the current account deficit continues to widen.