Agencies

Surging Energy Prices May Not Ease Until Next Year

By Abdulazeez KurangaPosted on October 22, 2021Posted in Africa & World Economy, AgenciesTagged Coal, energy, gas, Inflation, Supply ChainNo Comments

Spot prices for natural gas have more than quadrupled to record levels in Europe and Asia, and the persistence and global dimension of these price spikes are unprecedented. Typically, such moves are seasonal and localized. Asian prices, for example, saw a similar jump last year but those didn’t spill over with an associated similar rise in Europe.
Our expectation is that these prices will revert to more normal levels early next year when heating demand ebbs and supplies adjust. However, if prices stay high as they have been, this could begin to be a drag on global growth.

Meanwhile, ripple effects are being felt in coal and oil markets. Brent crude oil prices, the global benchmark, recently reached a seven-year high above $85 per barrel, as more buyers sought alternatives for heating and power generation amid already tight supplies. Coal, the nearest substitute, is in high demand as power plants turn to it more. This has pushed prices to the highest level since 2001, driving a rise in European carbon emission permit costs.

A Nobel Prize For A Revolution In Economics

By Sheriffdeen AdeotiPosted on October 12, 2021Posted in AgenciesTagged David card, economics, Guido Imbens, Joshua Angrist, Nobel priceNo Comments

Let’s time travel back in time to see why Card and Krueger’s work was such a revolution. It was the early 1990s. A Tribe Called Quest and Nirvana were blaring on sound systems. People were wearing neon colors and saying words like “cowabunga.” And these two young, Ivy League economists were working on a blockbuster study that would not only revolutionize thinking about the minimum wage — but also revolutionize thinking about how economic studies should be done.

Crypto Boom Poses New Challenges to Financial Stability

By Joshua OlorunsaiyePosted on October 4, 2021Posted in Agencies, Business & FinanceTagged Binance USD, Bitcoin, Central bank digital currencies, crypto assets, Crytpization, DAI, Ether, Smart contract ex. Ether, Stablecoin, Tether, USD CoinNo Comments

As crypto assets take hold, regulators need to step up.

Crypto assets offer a new world of opportunities: Quick and easy payments. Innovative financial services. Inclusive access to previously “unbanked” parts of the world. All are made possible by the crypto ecosystem. But along with the opportunities come challenges and risks.

How Countries Can Diversify Their Exports

By Aminu MusaPosted on September 22, 2021Posted in Africa & World Economy, AgenciesTagged Chile, Commodities, exports, Governance, imports, Malaysia, TradeNo Comments

By looking beyond commodities, the research shows that economy-wide policies such as governance and education help foster diverse exports more than narrowly targeted industrial policies, a finding that can better guide nations aiming to expand their international trade.
The examination of 201 countries and territories goes beyond the economic complexity indices that have traditionally been used by economists. Those proxies for the productive capability of a given economic system have strong sensitivity to commodities, which can distort their accuracy.

The Behavioral Economics Manifesto Gets Revised

By Joshua OlorunsaiyePosted on July 28, 2021Posted in AgenciesTagged Behaviour, Business, economics, Manifesto, United StatesNo Comments

“The basics of behavioral economics are really sound because they’re kind of obvious,” Thaler says. It’s obvious, he says, that people aren’t perfectly rational. It’s obvious that they suffer from self-control problems and have all kinds of emotions and biases that affect their behavior. The oddities of human behavior are very real and demonstrable — and economists and policymakers, he says, need to take that into account.

Cryptoassets as National Currency? A Step Too Far

By Aminu MusaPosted on July 27, 2021Posted in AgenciesTagged Assets, Bitcoin, Central Bank, Crypto, Digital CurrencyNo Comments

New digital forms of money have the potential to provide cheaper and faster payments, enhance financial inclusion, improve resilience and competition among payment providers, and facilitate cross-border transfers.

But doing so is not straightforward. It requires significant investment as well as difficult policy choices, such as clarifying the role of the public and private sectors in providing and regulating digital forms of money.

Some countries may be tempted by a shortcut: adopting cryptoassets as national currencies. Many are indeed secure, easy to access, and cheap to transact. We believe, however, that in most cases risks and costs outweigh potential benefits.

Taming Market Power Could (also) help Monetary Policy

By Abdulazeez KurangaPosted on July 21, 2021Posted in AgenciesTagged Central Bank, COVID-19, Economy, Expectation, Inflation, investment, Monetary PolicyNo Comments

Some central banks are currently debating whether to tighten monetary policy to fight inflationary pressures, after having eased decisively in response to the COVID-19 shock. In making such decisions, central bankers have to consider how much businesses and consumers will respond. The structure of the financial system and the future expectations of consumers and businesses are key drivers of how effective monetary policy actions will be. Yet there’s another, overlooked, driver: corporate market power.

Sub-Saharan Africa: We need to act now

By Adebisi SamuelPosted on June 29, 2021Posted in Africa & World Economy, AgenciesTagged Africa, COVID-19, Debt, GDP, Namibia, Pandemic, SSANo Comments

The growth of infections in sub-Saharan Africa is now the fastest in the world, with an explosive trajectory that is outpacing the record set in the second wave. At this pace, this new wave will likely surpass previous peaks in a matter of days—and in some countries, infections are already more than double, or even triple, their January peaks. The latest (delta) variant—reportedly 60 percent more transmissible than earlier variants—has been detected in 14 countries.

Four Facts about Soaring Consumer Food Prices

By Abdulazeez KurangaPosted on June 24, 2021Posted in AgenciesTagged COVID-19, CPI, Food, Food prices, Inflation, Pandemic, Prices, Supply Chain, TariffNo Comments

Rising world food prices for producers are making headlines and causing concerns among the public. The most recent data show a moderation in consumer food price inflation globally, but as we explain below, that could change in the coming months. This would only add to the high prices that consumers in many countries already lived through last year.

A Proposal to End the COVID-19 Pandemic

By Abdulazeez KurangaPosted on May 21, 2021Posted in Africa & World Economy, AgenciesTagged COVAX, COVID-19, GAVI, investment, Pandemic, Supply, Vaccine, WHO, World BankNo Comments

Many countries have stepped up in the global fight against the pandemic, as have institutions such as the World Health Organization, the World Bank, Gavi (the Global Alliance for Vaccines and Immunization), the African Union, and others.

Yet, more than a year into the COVID-19 crisis, new cases worldwide are higher than ever. Urgent action is needed to arrest the rising human toll and economic strain.