United States Archives - Gifted Analysts

Why U.S. Monetary Policy Objectives Are Unrealistic and How it Chokes the Global Economy in a Post-Pandemic World (PART ONE)

By Abdulmajid IsahPosted on July 19, 2023Posted in Africa & World Economy, EconomyTagged IMF, Interest rates, Monetary Policy, Pandemic, United States, US Dollar, US Fed1 Comment

The Federal Reserve Bank of the United States of America, also referred to as “The Federal Reserve” or “The Fed” or “The U.S. Fed,” has an almost monopolistic influence on the functioning and operation of global economies. Due to the U.S. dollar’s status as the World Reserve Currency (WRC) and the currency of choice (or circumstance) for international trade and commerce. The Federal Reserve, which is the apex bank of the world’s largest economy, serves almost as the de facto central bank for the rest of the world, and as such, decisions made within its walls ripple through the halls of other central banks and international/continental financial institutions.

In the first of two pieces on this subject, I will make an effort to present a clear and short explanation of what monetary policy is, how the Federal Reserve has worked to rein in inflation in a manner that is consistent with the objectives that it has articulated, and how inflation is proving to be structural in the economies of the United States and the rest of the world.

Drawing Further Apart: Widening Gaps in the Global Recovery

By Abdulazeez KurangaPosted on July 28, 2021Posted in Africa & World EconomyTagged COVID-19, Growth, IMF, Nigeria, Outlook, United States, Vaccines, WEONo Comments

The global economic recovery continues, but with a widening gap between advanced economies and many emerging market and developing economies. Our latest global growth forecast of 6 percent for 2021 is unchanged from the previous outlook, but the composition has changed.

Growth prospects for advanced economies this year have improved by 0.5 percentage point, but this is offset exactly by a downward revision for emerging market and developing economies driven by a significant downgrade for emerging Asia. For 2022, we project global growth of 4.9 percent, up from our previous forecast of 4.4 percent. But again, underlying this is a sizeable upgrade for advanced economies, and a more modest one for emerging market and developing economies.

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.

How “Chaos” In the Shipping Industry Is Choking The Economy

By Joshua OlorunsaiyePosted on June 16, 2021Posted in Africa & World EconomyTagged Economy, Sea, Shipping, United States, WorldNo Comments

On both land and at sea, the entire supply chain is struggling to keep up. In the Pacific Northwest, it’s become such a clusterfest that the U.S. Coast Guard has been redirecting boats to anchor off the coast of Whidbey Island and other places they typically don’t park. Ship crews are having to wait days, even weeks, for the chance to dock at the ports and offload their precious goods.

Monetary Policy at a Crossroad: Policymakers Need to Break Promise of Easy Money to Avoid Boom-Bust

By Okeowo EbenezerPosted on April 6, 2021Posted in Business & FinanceTagged Boom, Bust, Fiscal Stimulus, Monetary Policy, Monetary Policy Rate, Monetary stimulus, United StatesNo Comments

The Federal Reserve’s new policy approach is that policymakers want to see “actual progress, not forecast progress” before deciding to change its policy stance. Substantial actual progress is occurring in the economy, some faster than others. How much monetary accommodation is needed to meet the ultimate employment and inflation objectives is debatable. But it is less than when the pandemic started and less after the passage of $1.9 trillion in federal stimulus.

Determining when a policy stance has become too accommodative is not an easy matter—but enabling excessive risk-taking to become well-entrenched is comparable to past policy mistakes by allowing a build-up of inflation and inflation expectations. Both are difficult to unwind, and past episodes have shown it is impossible without triggering significant adverse effects in the economy.

Biden vs. Biden on China

By Joshua OlorunsaiyePosted on November 24, 2020Posted in Africa & World EconomyTagged Biden, China, Trump, United StatesNo Comments

If Biden talked about China in 2020 like he did back in 2000, he might have lost the election. Three-quarters of Americans now have an unfavorable view of the country — up from about a third in the early 2000s. China, which has an economy 12 times larger than it was in 2000, is now a boogeyman. Trade with China may have slashed costs for American consumers and created countless new jobs in various sectors, but — as organized labor warned back in 2000 — it also destroyed huge numbers of blue-collar jobs.

[INFOGRAPHICS] Top 10 Banks in the World

By Adebisi SamuelPosted on July 14, 2020Posted in AnalyticsTagged Banks, CEO, China, ICBC, Japan, United StatesNo Comments

Based on Tier-1 capital base, ICBC remains the biggest bank in the world followed by the China Construction Bank and the Agricultural Bank of China. We note that the first 4 biggest banks based on tier-1 capital are located in China while the next 5 are based in the United States and Mitsubishi financial group […]

What Beer Sales Tell us about the Recession

By Aminu MusaPosted on July 7, 2020Posted in Africa & World EconomyTagged Beer, COVID-19, Lockdown, Recession, Sales, United StatesNo Comments

Craft beer sales are surging at stores, but craft breweries are still struggling. Cheap beer is surging, but it’s still losing market share. That’s because the economics of the beer business are complicated. (And that’s before you start drinking). But the beer business can tell us a lot about the last two recessions.

Why Reopening Isn’t Enough To Save The Economy

By Aminu MusaPosted on June 23, 2020Posted in Africa & World EconomyTagged Coronavirus, COVID-19, Economy, Lockdown, United StatesNo Comments

This article provides key insights of a blockbuster study that was dropped late last week by a gang of economists led by Harvard’s Raj Chetty.

The World, Africa, West Africa and Nigeria’s Economy in 2018

By Abdulazeez KurangaPosted on October 22, 2019Posted in Analytics, ArticlesTagged Africa, Data Base, Economy, IMF, Lagos State, Nigeria, United States, West Africa, World Economic Forum2 Comments

In 2018, the International Monetary Fund (IMF) put the value of all goods and services produced in the world at $84.74 trillion with the United States as the largest economy in the world at $20.49 trillion which is about 51 times the size of Nigeria’s GDP (Africa’s largest economy).
This research therefore aims to give a break-down of the world economy in 2018 with specific focus on Lagos State, West Africa and Africa while giving insights into comparing different economies.

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