The macro data published in May and June so far shows a lackluster recovery, with significant challenges both in the pace of unemployment reduction and the improvement in consumption and investment.
According to the United Nations, global foreign direct investment is expected to fall 40 percent from pre-COVID levels in 2021, while U.S. and eurozone unemployment figures are likely to remain elevated even in a recovery.
THIS REPORT WAS PUBLISHED BY THE HERITAGE FOUNDATION HERE.
The Spanish economy is under serious threat. The Sánchez Administration is using the excuse of a serious health crisis to enact policies that undermine investor and business security and restrict personal and economic freedom. Such interventionism will trap the economy by increasing fiscal imbalances—Spain’s historical mistake—and put the country on a destructive track that will erode freedom and result in excessive spending, more debt, and rigidity. The long-term social and economic consequences of these mistakes can be enormous. Instead, the government should implement serious measures to enhance economic freedom and allow a strong recovery soon.
Continue reading Spain’s Economic Freedom Improves—But Post-COVID Risks Are Enormous (Heritage Foundation)Despite massive government and central bank stimuli, the global economy is seeing a concerning rise in defaults and delinquencies. The main central banks’ balance sheets (the Federal Reserve, Bank of Japan, European Central Bank, Bank of England and People’s Bank Of China) have soared to a combined $20 trillion, while the fiscal easing announcements in the major economies exceed 7% of the world’s GDP, according to Fitch Ratings. This is the biggest combined stimulus plan in history. However, businesses are closing at a record pace and unemployment has reached extremely elevated levels in many countries.
Continue reading The Risk of the “Bailout Of Everything”Many countries claim they have “gold-backed” currencies, in an effort to try to provide security and investor confidence. However, the reality is that none of the world’s fiat currencies is even remotely gold-backed and even less so the Chinese yuan.
Continue reading Debunking The Myth Of “Gold-Backed” Currencies