Economics
Demand shocks can have permanent impact on US economy – Fed paper
Authors find hysteresis is an important driver of longer-term growth trend in US
Pandemic Treasuries market calmed quickly – research
Dallas Fed analysis finds “headwinds” early on, but not lasting pandemic disruptions
Bank Indonesia tells banks to provide financing to SMEs
As much as 30% of banks’ loan books will need to be directed to small businesses
Lending rate rigidity weakens eurozone monetary policy – BdF paper
Asymmetric costs in changing bank lending reduce effects of looser policy
Germany should aim to cut corporate savings – ECB paper
Investment and banking reforms are needed to cut German firms’ savings, say researchers
PBoC to provide 300 billion yuan to SMEs
State Council calls on central bank to step in as Delta variant shows signs of denting growth
Eurozone inflation reaches 10-year high at 3%
Rapid rise in energy prices was main driver, according to Eurostat estimates
Canada records surprise GDP decline
Second-quarter figures show 0.3% contraction, which may affect taper and monetary policy
Dutch households to keep most pandemic savings
DNB still expects strong recovery in household consumption if social distancing measures are lifted
Chilean governor opposes new pension withdrawals
Congress considering authorising fourth drawdown as stimulus measure
German inflation could be over 2% until mid-2022 – Bundesbank
Inflation is likely to drop from early 2022 as base effects end, central bank forecasts
Jackson Hole conference switches to online-only model
Kansas City Fed cancels Wyoming get-together, citing Delta variant
Canada records highest inflation since 2011
House prices help drive figures up, as inflation becomes campaign issue in election season
Bank of Thailand calls for additional $30 billion borrowing
Debt totalled 54% of GDP by June, putting pressure on the 60% ceiling
How we can improve gender diversity in economics
Mary Suiter and Oksana Leukhina say gender diversity in economics must be championed
Eurozone returns to growth in Q2
Employment increases, but economic expansion is uneven across economies
Negative yields decline in Dutch bond markets
Sovereign bonds account for majority of securities yielding negative returns
Global economy faces ‘decisive moment’ – IMF’s Gaspar and Gopinath
Policy-makers have “window of opportunity” to help those falling behind in Covid-19 recovery
Link between US labour costs and inflation has weakened – ECB paper
US can sustain robust labour markets without risking inflation outbreak, researchers say
Energy prices boost Norway’s headline inflation to 3%
Core index declines to 1.1%, the lowest level in almost four years
OECD flags early signs of ‘moderating’ growth
Slowdown is widespread in advanced economies, but emerging markets see greater divergence
PBoC plays down surge in factory-gate prices
PPI and CPI in July both higher than expected, but central bank says pressure is “controllable”
Ecuador central bank doubles BIS credit line
Central bank to treat funds as precautionary to deal with a future downturn
‘Unstable, unreliable and temporary’: paper explores global co-operation
Policy-makers should heed JM Keynes’ 1919 warning, say Michael Bordo and Catherine Schenk