Mexico economic reshuffle reaffirms AMLO’s authority

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Unknown Quantity ◽  
Content Type ◽  
Policy Positions ◽  
Us Economy ◽  
The Us

Significance President Andres Manuel Lopez Obrador (AMLO) has nominated Herrera to become governor of the Bank of Mexico (Banxico) from 2022, taking over from incumbent Governor Alejandro Diaz de Leon. Impacts The markets have taken the changes calmly so far, but Ramirez is a relatively unknown quantity, raising some potential uncertainty. Until Ramirez is ratified by legislators, his decisions will be legally questionable, raising the prospect of challenges in court. As Banxico governor, Herrera will enjoy legal autonomy, giving him the freedom to diverge from AMLO on policy positions. Maintenance of a tight fiscal policy and a tighter monetary policy will dampen growth in 2021. Exports, particularly those geared towards the US economy, will be the most powerful engine of growth.

Prospects for the US economy in 2022

2021 ◽  
Keyword(s):  
Monetary Policy ◽  
Social Infrastructure ◽  
Content Type ◽  
The Third ◽  
Us Economy ◽  
Real Gdp ◽  
Personal Consumption ◽  
The Us ◽  
Fiscal And Monetary Policy

Subject Prospects for the US economy in 2022. Significance The US economy has recovered quickly, with real GDP surpassing the level of the previous peak by the third quarter. Personal consumption spending is 8.6% above pre-pandemic levels but employment remains well below, while supply/demand imbalances will ease only gradually through 2022. Fiscal and monetary policy will be less expansionary, even if President Joe Biden’s second, USD2tn social infrastructure bill passes, and if rates stay on hold well into next year.

scholarly journals Pushing on a String: US Monetary Policy Is Less Powerful in Recessions

2016 ◽  
Vol 8 (4) ◽  
pp. 43-74 ◽  
Author(s):  
Silvana Tenreyro ◽  
Gregory Thwaites
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Business Cycle ◽  
Resource Utilization ◽  
Monetary Policy Shocks ◽  
Business Investment ◽  
Us Economy ◽  
The Us ◽  
Policy Shocks ◽  
The Business Cycle

We investigate how the response of the US economy to monetary policy shocks depends on the state of the business cycle. The effects of monetary policy are less powerful in recessions, especially for durables expenditure and business investment. The asymmetry relates to how fast the economy is growing, rather than to the level of resource utilization. There is some evidence that fiscal policy has counteracted monetary policy in recessions but reinforced it in booms. We also find evidence that contractionary policy shocks are more powerful than expansionary shocks, but contractionary shocks have not been more common in booms. So this asymmetry cannot explain our main finding. (JEL E21, E22, E32, E52)

Lenovo’s successful acquisition of the IBM PC Division

2016 ◽  
Vol 32 (9) ◽  
pp. 32-35
Author(s):  
Mark Thomas
Keyword(s):  
Design Methodology ◽  
Chinese Economy ◽  
High Tech ◽  
Tablet Computers ◽  
Content Type ◽  
Us Economy ◽  
The Us ◽  
Pertinent Information ◽  
Traditional Manufacturing

Purpose The purpose of this paper is to analyze Lenovo’s successful acquisition of IBM’s PC division using Ghemawat’s (2001) CAGE framework. It was an acquisition that was so full of symbols that it is difficult to know where to begin. Lenovo’s purchase of IBM in 2005 was first seen as a sign of the rapid growth and expansion of the Chinese economy and its transformation away from the traditional manufacturing base to more high-tech areas. For doomsday merchants in the land of Uncle Sam, it foretold the end of the world domination of the US economy. Despite a considerable number of skeptics at the time, Lenovo was clearly up to the task. Such was the success of the acquisition that by 2015, Lenovo could claim to have grown into the world’s number 1 PC maker, number 3 smartphone manufacturer and number 3 in the production of tablet computers. Design/methodology/approach This paper is a case study. Findings Despite a considerable number of skeptics at the time, Lenovo was clearly up to the task. Such was the success of the acquisition that by 2015, Lenovo could claim to have grown into the world’s number 1 PC maker, number 3 smartphone manufacturer and number 3 in the production of tablet computers. Indeed, by 2014, the firm had enough confidence to add the IBM server business to its portfolio. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Macroeconomic conditions are only an illusion, not the solution, to firm sustainability: unveiling the new dimension of stakeholder well-being

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zahid Irshad Younas ◽  
Mahvesh Khan ◽  
Mamdouh Abdulaziz Saleh Al-Faryan
Keyword(s):  
Well Being ◽  
Developed Countries ◽  
Macroeconomic Performance ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Us Economy ◽  
The Us ◽  
The Usa ◽  
Negative Impacts ◽  
The One

Purpose The purpose of the study is to explore the misconception that in developed countries, macroeconomic performance lead to sustainable firms or improves stakeholder well-being. The results may be the opposite or even worse. Design/methodology/approach This study examined this misconception using balanced panel data from 1,122 firms from different sectors of the US economy and data on macroeconomic performance from the World Bank. Findings The results of the one-step generalised method of moments indicate that most macroeconomic performance indicators had significant and negative impacts on firm sustainability and stakeholder well-being. Practical implications From a societal perspective, the results illustrate that the fruits of macroeconomic performance of the US economy do not reach stakeholders through firms’ sustainability. Thus, linking the economy’s macroeconomic performance with firm sustainability is vital for sustainably uplifting society and for stakeholder well-being. Originality/value From a policy perspective, this study reveals that the greater focus on macroeconomic performance in the USA over the past decades has resulted in lower firm sustainability because of the malfunctioning of social, economic, environmental and governance factors. This has negatively influenced stakeholder well-being in the country.

CHALLENGES OF DEVELOPMENT OF AN ANTI-CRISIS STRATEGY TO OVERCOME THE CORONOVIRUS PANDEMIC AND ITS CONSEQUENCES

2020 ◽  
pp. 68-83
Author(s):  
Elena Lutskaya ◽  
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Financial System ◽  
Global Markets ◽  
Federal Reserve System ◽  
Us Economy ◽  
The Us ◽  
Reserve System

The article examines the views of Western researchers on overcoming the COVID-19 crisis and its consequences. The main focus is on the monetary policy of the Federal Reserve system - the most developed financial system that affects both the US economy and global markets.

scholarly journals The Federal Reserve Banks New Monetary Policy Tool

2012 ◽  
Vol 10 (9) ◽  
pp. 533
Author(s):  
David Gordon
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Vital Role ◽  
Open Market ◽  
Federal Reserve Bank ◽  
Us Economy ◽  
Policy Tool ◽  
Reserve Bank ◽  
The Us ◽  
Demand Deposit

The Federal Reserve Bank (FED) plays a vital role in the US economy. The roles and functions of the Fed are discussed here. This paper also offers an explanation of the traditional tools the Fed uses to conduct monetary policy. Open market operations are explained. The important role of the discount rate is discussed. The legally required reserve ratios are also explored. This author believes that the Fed has recently created a new tool. This tool is the payment of interest on demand deposit accounts at the Fed. This new tool is explained and its ramifications explored. The functions of monetary policy are also expanded upon in this paper.

scholarly journals Fiscal Foundations of Inflation: Imperfect Knowledge

2018 ◽  
Vol 108 (9) ◽  
pp. 2551-2589 ◽  
Author(s):  
Stefano Eusepi ◽  
Bruce Preston
Keyword(s):  
Monetary Policy ◽  
Public Debt ◽  
Wealth Effects ◽  
Inflation Expectations ◽  
Ricardian Equivalence ◽  
The Public ◽  
Us Economy ◽  
The Us ◽  
Imperfect Knowledge ◽  
Consumption Demand

This paper proposes a theory of the fiscal foundations of inflation based on imperfect knowledge and learning. Because imperfect knowledge breaks Ricardian equivalence, the scale and composition of the public debt matter for inflation. High and moderate duration debt generates wealth effects on consumption demand that impairs the intertemporal substitution channel of monetary policy: aggressive monetary policy is required to anchor inflation expectations. Counterfactual experiments conducted in an estimated model reveal that the US economy would have been substantially more volatile over the Great Inflation and Great Moderation periods if US debt levels had been those observed in Italy or Japan. (JEL D84, E31, E32, E52, E62, H63)

scholarly journals FINANCIAL SECTOR INTERCONNECTEDNESS AND MONETARY POLICY TRANSMISSION

2018 ◽  
Vol 23 (3) ◽  
pp. 1074-1101
Author(s):  
Alessandro Barattieri ◽  
Maya Eden ◽  
Dalibor Stevanovic
Keyword(s):  
Monetary Policy ◽  
Vector Autoregression ◽  
The United States ◽  
Structural Vector Autoregression ◽  
Net Worth ◽  
Financial Variables ◽  
Us Economy ◽  
The Us ◽  
Policy Shocks ◽  
Using Data

We present a stylized model that illustrates how interbank trading can reduce the sensitivity of lending to entrepreneurs' net worth, thus affecting the transmission mechanism of monetary policy through the credit channel. We build a model-consistent measure of interconnectedness and document that, in the United States, this measure has increased substantially during the period 1952–2016. Finally, interacting the measure of interconnectedness in a structural vector autoregression and a factor-augmented vector autoregression for the US economy, we find that the impulse responses of several real and financial variables to monetary policy shocks are dampened as interconnectedness increases. We confirm the same result using data from 10 Euro area countries for the period 1999–2016.

scholarly journals Fed and ECB: which is informative in determining the DCC between bitcoin and energy commodities?

2020 ◽  
Vol 4 (1) ◽  
pp. 77-102
Author(s):  
Abdelkader Derbali ◽  
Lamia Jamel ◽  
Monia Ben Ltaifa ◽  
Ahmed K. Elnagar ◽  
Ali Lamouchi
Keyword(s):  
Monetary Policy ◽  
Design Methodology ◽  
Commodity Markets ◽  
Portfolio Risk ◽  
Conditional Correlation ◽  
Predictive Capacity ◽  
Federal Funds ◽  
Content Type ◽  
The Us ◽  
Risk Managers

PurposeThis paper provides an important perspective to the predictive capacity of Fed and European Central Bank (ECB) meeting dates and production announcements for the dynamic conditional correlation (DCC) between Bitcoin and energy commodities returns and volatilities during the period from August 11, 2015 to March 31, 2018.Design/methodology/approachTo assess empirically the unanticipated component of the US and ECB monetary policy, the authors pursue the Kuttner's approach and use the federal funds futures and the ECB funds futures to assess the surprise component. The authors use the approach of DCC as introduced by Engle (2002) during the period from August 11, 2015 to March 31, 2018.FindingsThe authors’ results suggest strong significant DCCs between Bitcoin and energy commodity markets if monetary policy surprises are incorporated in variance. These results confirmed the financialization of Bitcoin and commodity energy markets. Finally, the DCC between Bitcoin and energy commodity markets appears to respond considerably more in the case of Fed surprises than ECB surprises.Originality/valueThis study is a crucial topic for policymakers and portfolio risk managers.

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