Erste Asset Management

Global economic slump less severe than expected, but still the worst recession in decades, according to IMF
Global economic slump less severe than expected, but still the worst recession in decades, according to IMF
(C) IMF Photograph / Stephen Jaffe

Global economic slump less severe than expected, but still the worst recession in decades, according to IMF

According to current forecasts by the International Monetary Fund (IMF), the global economy should be able to handle the consequences of the corona pandemic somewhat better than has been feared. In its eagerly awaited global economic outlook for this year, the IMF now expects global economic output to decline by only 4.4 per cent. The IMF has thus adjusted its last forecast from June by 0.5 percentage points.

US election campaign entering hot phase: decision in the midst of the crisis
US election campaign entering hot phase: decision in the midst of the crisis
© Morry Gash / POOL / AFP / picturedesk.com

US election campaign entering hot phase: decision in the midst of the crisis

In the midst of the corona crisis, following the first TV debate and US president Donald Trump’s infection with the corona virus, the race for the US presidential office enters its critical phase. In nationwide opinion polls, Democratic candidate Joe Biden is currently ahead of Republican incumbent Trump.

LATEST CONTRIBUTIONS

The new economic paradigm: cheap money and a very active State
The new economic paradigm: cheap money and a very active State
(c) unsplash

The new economic paradigm: cheap money and a very active State

The economic paradigm – the leitmotif, as it were – has only changed twice in the past 200 years: in the 1930s from liberalism to Keynesianism, and in the 1970s to monetarism. Since the Great Financial Crisis in 2008, we have noticed a new economic upheaval, which has now crystallised into a new paradigm as a consequence of the measures taken to fight the corona pandemic: without a name yet, this paradigm is characterised by cheap money and a very active role of the State.

US election campaign entering hot phase: decision in the midst of the crisis
US election campaign entering hot phase: decision in the midst of the crisis
© Morry Gash / POOL / AFP / picturedesk.com

US election campaign entering hot phase: decision in the midst of the crisis

In the midst of the corona crisis, following the first TV debate and US president Donald Trump’s infection with the corona virus, the race for the US presidential office enters its critical phase. In nationwide opinion polls, Democratic candidate Joe Biden is currently ahead of Republican incumbent Trump.

High Inflation – likely to emerge?
High Inflation – likely to emerge?
(c) unsplash

High Inflation – likely to emerge?

At the beginning of September, the FED announced a significant change in their policy: They officially announced the implementation of “average inflation targeting”. This allows to have a higher inflation rate for a period of time instead of being closely held to the target inflation rate of 2%.
Why did the FED announce this shift in its policy? Is inflation returning in the agenda? In this article, we intend to show the policy requirements for high(er) inflation.

Know-How

Equities

Bonds