Reflectii

Inflation and the Future of Economic Stimulus

Two years ago, I predicted in Foreign Affairs that the COVID-19 recession, coming on top of the financial crisis of 2008, would lead rich democracies to redefine the outer limits of their monetary and fiscal power, ushering in an “age of magic money.” Because central banks had a long record of containing inflation, the penalty for profligacy would likely not materialize; supersized stimuli could coexist with stable prices. Of course, the success of this experiment would depend on the continued inflation-fighting credibility of central banks, the Federal Reserve foremost among them. “If the Fed loses its independence, the age of magic money could end in catastrophe,” I noted.

This week, France repatriated 16 women associated with the so-called Islamic State terrorist group and 35 children from camps in northeastern Syria.

Most states that have repatriated citizens have brought back women and children, including unaccompanied minors, but the plight of men and older boys still in detention, remains dire.

After weathering numerous storms that would have sunk others, Boris Johnson’s time as prime minister comes to an ignoble end, mired in scandal and having lost the support of nearly all his MPs.

The resignation didn’t come out of nowhere – Johnson was already losing support from his party, narrowly surviving a confidence vote in early June. Just two weeks later, things were looking even grimmer, after losing two byelections in supposedly safe seats.

The US dollar has been on a major surge against major global currencies in the past year, recently hitting levels not seen in 20 years. It has gained 15% against the British pound, 16% against the euro and 23% against the Japanese yen.

The recent dramatic events that led to the resignation of UK prime minister, Boris Johnson, on July 7 2022 raise the issue of how politics – and economic policy uncertainty more specifically – affects the UK economy. The answer, of course, is that it does, and sometimes for as much as two years.

Poles are feeling the effects of the cost-of-living rise, though what damage this will do to the ruling party’s popularity ahead of next year’s election is still unclear.

At the Rozycki Bazaar in the North Prague district of the Polish capital, the mood is bleak. The market has existed for 150 years, but the owners of stalls think its days may be finally numbered.

Drivers should be aware of the reality that every time they add 16 gallons of fuel to their vehicle, that $1.30 a gallon is contributing $20 per tank to government programs. Where is the accountability for these programs?

As Dominic Raab and Michael Gove rule themselves out, we look at the main contenders and the five camps they fall into within the Tory Party

The flood of ministerial resignations from UK prime minister Boris Johnson’s government in recent days started with Rishi Sunak’s resignation as UK chancellor of the exchequer on July 5 2022, alongside health secretary Sajid Javid’s. His resignation letter cited differences of opinion over the economy, saying that a “low-tax, high-growth economy and world-class public services” could only be “responsibly delivered if we are prepared to work hard, make sacrifices and take difficult decisions”.

Boris Johnson’s resignation as prime minister is not just a portentous political event. His time in office – and the nature of his departure – throw up vital questions about democratic values and institutions.