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Articles related to "economist"


The neoliberal era is ending. What comes next?

  • So from higher taxes for the wealthy to more robust government, the time has come for ideas that seemed impossible just months ago.
  • On 4 April 2020, the British-based Financial Times published an editorial likely to be quoted by historians for years to come.
  • In those days, just after the war, most politicians and economists espoused the ideas of John Maynard Keynes, British economist and champion of a strong state, high taxes, and a robust social safety net.
  • According to Friedman, what happens in a time of crisis all depends on the groundwork that’s been laid.
  • In his State of the Union address in 1996, Clinton, president at the time, pronounced “the era of big government is over”.
  • If Friedman was right and a crisis makes the unthinkable inevitable, then this time around history may well take a very different turn.

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US weekly jobless claims hit 1.4 million, more than economist forecasts - Business Insider

  • More than a million Americans filed for unemployment benefits last week, signaling that pandemic-induced layoffs remain highly elevated even with the US economy reopening.
  • US weekly jobless claims totaled 1.43 million in the week that ended Saturday, the Labor Department said Thursday.
  • In just a few months, the roughly 49 million unemployment claims filed during the coronavirus pandemic have far surpassed the roughly 37 million during the 18-month Great Recession.
  • Continuing claims, which represent the aggregate total of people receiving unemployment benefits, came in at 19.3 million for the week that ended June 20, roughly in line with a revised number from the prior period.
  • And, stubbornly high weekly unemployment claims remain a worrying sign that the labor market might not rebound as quickly as hoped.
  • Going forward, unemployment claims could be impacted by surging coronavirus cases that have threatened or set back reopening efforts in some states.

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US weekly jobless claims hit 1.4 million, more than economist forecasts - Business Insider

  • More than a million Americans filed for unemployment benefits last week, signaling that pandemic-induced layoffs remain highly elevated even with the US economy reopening.
  • US weekly jobless claims totaled 1.43 million in the week that ended Saturday, the Labor Department said Thursday.
  • In just a few months, the roughly 49 million unemployment claims filed during the coronavirus pandemic have far surpassed the roughly 37 million during the 18-month Great Recession.
  • Continuing claims, which represent the aggregate total of people receiving unemployment benefits, came in at 19.3 million for the week that ended June 20, roughly in line with a revised number from the prior period.
  • And, stubbornly high weekly unemployment claims remain a worrying sign that the labor market might not rebound as quickly as hoped.
  • Going forward, unemployment claims could be impacted by surging coronavirus cases that have threatened or set back reopening efforts in some states.

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Boost the economy before attempting budget repair

  • The fiscal props such as the $70 billion JobKeeper program holding up the economy should not be pulled away too quickly and the government should be patient when it comes to repairing the COVID-19 hole in its budget.
  • Economists expect an annual contraction of 4 per cent in 2020, according to The Australian Financial Review's economists survey for the June quarter.
  • As the virus continues to hold sway over the country's reopening schedule, the unemployment rate is already moving higher, rising to 7.1 per cent in May. The rate is only expected to continue to climb this year, according to the June economist survey.
  • Tim Toohey, chief strategist at Yarra Capital Management, pointed out that the government's very low borrowing costs give it ample time to focus on an economic recovery during 2021 before it needs to consider budget repair.

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Second wave threat could pop travel 'bubble'

  • Respondents to The Australian Financial Review's economists survey for the June quarter said a revival of interstate and international travel was important to help the economy regain its footing but any easing in restrictions needed to preference medical efforts to contain the virus.
  • HSBC chief economist Paul Bloxham echoed the need to back medical expert advice to ensure Australia doesn't surrender its world-leading efforts in managing a virus that has claimed more than 500,000 lives globally.
  • The success of Australia's neighbours in containing the virus has the tourism industry eagerly promoting the establishment of travel "bubbles" with select destinations such as New Zealand and Singapore.
  • New Zealand Prime Minister Jacinda Ardern said earlier this week the establishment of a travel bubble would depend on Australia's success in containing the virus.

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Canada’s economy shrinks almost 12% in April in biggest contraction on record

  • OTTAWA — Statistics Canada says the economy saw its largest monthly drop on record in April as it came to a near standstill due to the pandemic, but early indications point to a rebound in May as businesses began to reopen.
  • The agency said Tuesday gross domestic product fell 11.6 per cent in April with non-essential businesses shut for the full month following a 7.5 per cent decline in March.
  • Even sectors that had increases in March weren’t spared in April like food manufacturing, which dropped 12.8 per cent in April as outbreaks at meat processing plants forced them to shut down.
  • The accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.
  • Accommodation services fell 45.7 per cent, Statistics Canada says, owing to restrictions on travel between provincial and international borders.

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Debelle rebuts the inflationistas

  • If you're anxious that massive amounts of money-printing by the world's central banks will inevitably trigger an outbreak of global inflation or a collapse in the currency then you'd be well advised to take heed of the latest comments from the Reserve Bank's deputy governor, Guy Debelle.
  • In a speech to the Economic Society of Australia on Tuesday, Dr Debelle coolly rebutted the argument of any number of monetarists and hedge fund titans who have warned that moves by the world's central banks to crank up the money printing presses, in response to the coronavirus pandemic, will inevitably result in a surge in inflation.
  • The RBA deputy governor coolly dismissed warnings that money printing to fund pandemic recovery efforts will lead to a surge in inflation.

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Economists warn Australia still too tied to China

  • Coal, iron ore, education, and tourism, as Australia's four largest exports, all rely heavily on Chinese demand, with around 40 per cent of total exports currently accounted for by China.
  • For now Australia has some strategic bargaining power as China has no real alternative high-volume iron ore source, but every export remains at immediate risk from rising political tensions.
  • If any trade war escalated in tandem with US/China tensions then China would still require Australian iron ore and to a lesser extent metallurgical coal.
  • Independent economist Saul Eslake said any trade war would cost Australia proportionately a lot more than China, with important sectors like education, tourism, and agriculture at the most risk.
  • Other economists like ING's Carnell said Chinese power presents as much of a medium-term risk for the tourism and education services sectors as COVID-19.

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ASX to rally; Wall Street surges

  • Often paired with an image of Federal Reserve chairman Jerome Powell cranking out US dollars on his "brrr machine" at the speed of light, it's become the cheeky catch-all response to why global markets continue to march higher even as COVID-19 cases top 10 million, economies struggle to regain their footing and there is increased uncertainty around getting a true picture of the earnings outlook.
  • A quick eyeballing of the V-shaped recovery in global markets from their March lows against a chart of the asymptomatic $US3 trillion expansion of the Federal Reserve's balance sheet strongly hints at the role of central bank liquidity in fuelling the high-octane rally.
  • Top market economists in The Australian Financial Review's survey for the June quarter have listened to the governor's comments on negative rates and formed the view they are unlikely in Australia.

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