The blurry picture of the global economy needs demand, needs consideration

Starting with the global economic conditions in various countries,
they are going through crises that we have not seen for a long time.

As a result of inflation, each country has taken it upon itself to look into its economy,
which has not stopped bleeding since the Covid-19 pandemic,
and which has removed the curtain on the inflation scene,
which began to penetrate significantly after the outbreak of the Russian crisis.

And Ukraine to do this took the international banks working on developing solutions
and plans to get out of these crises, but the matter did not work,
as they are temporary solutions that do not correspond to the size of the crisis, however.

The winds of hope began to develop organized solutions and
take another course of thinking toward developing new economic policies
that would enhance the demand market, which was greatly affected by the current economic affairs,
as the relationship of supply with demand is a direct relationship,
as the greater the demand, which represents the appetite of the economy in Inwardly,
the demand market has become more active, which is again in the interest of the economy.

In the past, the matter was agreed upon by the officials,
but now the division of opinions towards taking a new course in setting policies has become dominant,
as everyone is running towards one goal, but taking any course is the most important,
considering the United Kingdom and Uriah, for example,
in the different paths In making decisions really foretells the birth of a new doctrine towards politics.

topics

the supply and demand market

Economists who won this year’s Nobel Prize

The ferocity of the Fed has caused a sharp price bleeding that no one can stop.

the supply and demand market

Since, as we mentioned in the previous paragraph, the supply and demand market is related, rather,
to talk about the supply market, which suffers from its notoriety,
which was associated with the eighties, where tax cuts would enhance economic growth significantly,
as tax cuts cover its costs, and this indeed seems correct if taxes Marginalization is significantly high
and exceeds the fair percentages, but if it is natural to think about it,
it is not right at all to think about it, actually,
it would increase and economic growth,
but it would conflict with tax revenues that would be lost,
which leads to the price of investors and stopping
the exciting internal progress Civil and military.

The matter has become very confusing between the establishment of fair investments
or the outbreak of internal disputes by the investor who owns the wheel of career recovery.

Which prompted governments to self-spend,

which would stimulate the economy,
and this appeared during the period of the Great Recession,
which exhausted the budgets of individuals and prompted them to reduce spending.

As for policymakers, they believed that they could stimulate the economy
by increasing demand and self-expenditure.

Strengthening demand became the goal of all economic policies
until the emergence of Covid,
so the view shifted to revitalizing the supply market,
which was hurt due to preventive measures,
as the activity of the demand market led to a collision with the inflation wall,
starting in the year 2020.

As for revitalizing the supply market,
it seems that it is one of the things that is almost suitable
for the scene in the provision of cheaper housing
and the availability of food and production commodities
that will fix the situation and put down inflation.

Looking at the housing sector, for example,
there are many restrictions imposed on construction work that
would paralyze the market Supply and cause prices to rise to such an extent
that no one wants to talk about it despite the widespread realization of this by politicians.

But the government trend remains the wiser trend,
as the nature of capital tends to take profitable projects without looking at the national trend
and considering the internal affairs of development.

US initiative

The tendency towards revitalizing the supply market was the goal
that the Lys Terrace government aspired to,
as government proposals tended towards tax cuts and imposed fees,
but there was another opinion of the economic writer; Clive Crook;
Where he pointed out the exaggerated contradictions,
as the tax cuts are not so large, within the limits of approximately 52 billion US dollars,
which is equivalent to 45 billion pounds sterling out of the
total developed plan estimated at 160 billion pounds.

He also added that another 2 billion of the total budget was undone,
indicating that The general idea seems good to stimulate comprehensive growth
and remove economic obstacles,
despite the fact that a large part of it goes to energy subsidies.

About the United States of America

The Biden government has also taken the tendency to activate the industrial
wheel that appeared in the provisions of the Reconstruction Bill,
despite Congress’s disapproval of a large part of that plan that
we will witness in the coming period in implementation,
which is the matter in the hands of all conservatives in the United States.

Overview of this trend.

Spending and inflation are eternal enemies.
Expenditure and tax cuts will lead to economic exhaustion that
causes inflation at least in the short and medium term,
as the result of the reduction appears faster than activating the supply market,
which may take years to rise despite this trend
The politician is widely biased towards the spending approach,
as the government’s spending trend has always been met with a negative view by the public,
as it is considered a wise long-term investment.
The interest of the investors in the end.

Economists who won this year’s Nobel Prize

for avoiding bank collapse and their role in avoiding financial crises.

Douglas Diamond, Philip Diving,
and Ben Bernanke were awarded this year’s Nobel Prize in Economics.
The trio’s journey began at the dawn of the eighties,
as they worked to establish scientific research that studies how to avoid crises,
the reason for the existence of banks and avoiding bank collapses,
and how bank collapses exacerbate financial crises,
as their analysis had a great impact on financial markets
and dealing with financial crises as well.
The committee explained.

The Royal Swedish Academy of Sciences awarded them this year’s Nobel Prize
|in Economics for their research on the role of banks in avoiding financial crises,
as they have corrected the committee’s understanding of the role of banks in the economy,
and rather during financial crises.

So who are the great ones?

(Douglas Diamond, Ben Bernanke, Philip Dewig)

First, Douglas Diamond. He is an American,
holds a doctorate from Yale University, Connecticut,
New Haven in 1980, and was born in 1953.
For the US Federal and finally (Philip Debwig: American,
he holds a Ph.D. from Yale University in 1979,
and he was born in 1955.

One of the most important findings of the research is that protecting
the banking system from collapse if depositors withdraw their money
at the same time stops providing insurance by governments,
as the Chairman of the Committee, Tory Elegance,
stated that our ability to rescue operations and avoid serious crises came mostly
through those researches conducted by these The winners.

This award was estimated at 10 million Swedish kronor,
which is equivalent to approximately 900,000 dollars,
which is officially known as the Bank of Sweden Prize in Economic Sciences.

The award was also given last year to Joshua Anne Greste, Guido M. Pines,
and David Card for their research into the operation of labor markets.

It was worth noting that this award is the only one that was not issued in Alfred Nobel’s will,
and it began in 1968, coinciding with the 300th
anniversary of the founding of the Central Bank of Sweden,
and its value may be equal to other Nobel prizes in astronomy,
medicine, physics, peace, and others. It was awarded for the first time in 1969,
by the Norwegian (Ragnar Frisch), but until now the first leader of that
award remains the owner of American citizenship.

The ferocity of the Fed has caused a sharp price bleeding that no one can stop.

Since the beginning of January of this year, it has become a nightmare for investors,
the decline of stocks by nearly 25%, as the matter has become a concern for many traders and investors.

Doing those dangerous things the Fed is doing to raise interest rates to this extent,
which reaches its plan to reach 45%,
making the markets in A state of collapse not seen in many years.

About 20 years ago,

the dollar did not reach these levels,
which may cause economic collapses and cause financial crises for many countries in the world.
The bond market has been greatly affected, and chaos has become the loudest sound,
so this may cause the closure of huge financial institutions if the matter continues. Along this way.

The situation now makes investors and traders worried about the rise in government bond yields,
but they are not alone in suffering from small companies that want to borrow,
and those looking for home loans are also very worried about what is happening
with the high-interest rates that the modern world has not witnessed before,
but they have no choice. Just adapting and coexisting with the current situation.

We will wait for the Fed’s inflation data next week,
as on Thursday the consumer index for September will be released. Next week,
it will push investors to think deeply about it, and thus push the Fed to engage in a logical solution,
as the matter will prove that inflation has reached its peak or that
signs of slowing its rise have already begun,
as investors receive on Friday an update from the University of Michigan
on the consumer confidence survey and expectations survey Inflation It is also clear
that housing market problems due to mortgages can cause serious problems

It seems that raising interest rates

is not an effective solution for the US economy,
despite the false strength of the dollar that negatively affects
the health of US bonds and stocks,
which negatively affects monetary policies throughout Europe and the world.

It seems that sticking to this solution and not retracting
it is the only decision in the hands of decision-makers.

At the Federal Reserve in other places,
many central banks around the world may raise interest rates,
with hikes likely as far afield as Australia and Peru. Meanwhile,
key policy statements by UK Conservative Party leaders will be scrutinized
for any sign of a shift in unfunded tax cuts that
most economists and global economists have predicted.

Inflation data will be scrutinized particularly closely as investors grapple
with indications that the US labor market may already be beginning to weaken,
according to Krishna Guha and Peter Williams. It makes traders expect
the interest rate to reach its highest level of 4.75% in March at the latest,
as it is a good opportunity for investors in the futures market to bet on higher prices.

The S&P 500 index saw a rise of up to 17%
In the 12 months following a peak in the federal funds rate range,
according to Fed data and sterling data (gw&k),
the Nasdaq and Dow Jones also rose significantly
after the Fed raised interest rates
and tightened monetary policy,
stocks began last week and the fourth quarter to rise
It lasted two days after major indexes ended September 30
at their lowest levels since 2020 as these gains faded over the course of the week
as Fed officials and economic data undermined investors’ expectations about the possible Fed.

The recent decisions taken by the Federal Reserve

have had the effect of damaging assets,
their prices, and their movements, including stocks.

Wall Street, we may see these events again,
despite the dollar’s dominance over the money market now
and its value increasing dramatically.

Will we witness this again?

John Williams, Federal Reserve Chairman, has stated that things will not be resolved overnight,
in controlling inflation is something that will require a lot of work and must take its time,
warning against rushing towards this matter.

He also stated in his speech to Finsky on Monday that monetary policy
The more stringent ones started to bear fruit,
as they reduced inflationary pressures and calmed the demand significantly,
noting that the task is not finished yet, we still have some time,
but I am fully confident that price stability will return for a sustainable period,
and there is no retreat from the strict policies and raising interest rates.

article name The blurry picture of the global economy needs demand

The blurry picture of the global economy needs demand

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