#public-debt-and-austerity

#public-debt-and-austerity

The Bank of Japan's loose monetary policy has turned the yen into the world's cheapest and most reliable funding currency, creating a publicly subsidised funding pipeline for bankers.

Credit cards can be very dangerous from a financial well-being perspective, if used irresponsibly. The temptation to use one to fund a big holiday or a new sofa that you can't afford can be seriously tempting.

Powell stated, 'I would call that a soft landing,' referring to the economic conditions where growth was at 2.5 percent and inflation just above 2 percent.

The orthodoxy across much of the world has been that only markets should decide what things cost, as argued by influential economists like Friedrich Hayek.

"The historical evidence reveals a striking pattern: government bonds have repeatedly generated substantial real losses during these extreme episodes. They have even underperformed equities and real estates which are traditionally regarded as risky assets."

Services experienced the highest annual increase at 3.4%, followed by food, alcohol, and tobacco at 2.5%. Non-energy industrial goods saw a more modest increase of 0.7%. Meanwhile, energy prices fell by 3.1% over the month, which helped to temper overall inflation pressures.

The country is almost certain to enter the next shock more indebted than we have ever been before, which may significantly hamper our ability to marshal an appropriate response. The U.S. has never experienced an economic shock as indebted as we are today. This situation leaves the U.S. immensely vulnerable.

Setting aside a designated day to switch utility providers will pay dividends in the long run

The Prime Minister, Sebastien Lecornu, was given little chance of survival, let alone finding a budget deal, when he was appointed for a second time in October. He deserves some credit for backing the heavy truck of the French political system out of a cul-de-sac (English for voie sans issue). Otherwise, what have we learned? That France still refuses to face up to a deficit crisis a half-century in the making;

"France finally has a budget,"

Do you remember a time in your city in Spain when bar and restaurant terraces were not packed with locals having fun (except for during the Covid-19 lockdown, of course)? No matter how tight finances are, Spaniards always seem to have the money for eating and drinking out. Some would say this carpe diem attitude is to be admired rather than sniffed at. After all, it goes hand in hand with the much-admired Spanish lifestyle - outdoors, in the company of others, enjoying the moment.

As tensions simmer between the European Union and the U.S. over the Trump administration's trade policies and its play for Greenland, we've been hearing about the EU's economic "bazooka." What is it? AILSA CHANG, HOST: Things are quite tense right now between the U.S. and the European Union. Sources of that tension include the Trump administration's trade policies and its play for Greenland, which, in turn, has led to talk about the EU's anticoercion mechanism, also known as its economic bazooka.

There are serious accusations on the table that must now be completely cleared up. I call for rapid and rigorous investigations,

The European Central Bank (ECB) held its key interest rates unchanged following the February meeting of the Governing Council, in line with Cebr projections. This marks the fifth consecutive hold, despite a below-target inflation reading of 1.7% in January, the lowest level since 2021. The decision to hold rates also comes despite a recent Euro rally against the dollar, which is expected to add disinflationary pressure through cheaper imports and weigh on growth by making the bloc's exports more expensive.

He managed to get a bill on social security spending approved by year end, but lawmakers have failed to reach a compromise on state expenses. Lécornu's office said late on Thursday that it would be "impossible to adopt a budget by a vote" and that it would be looking at two alternative options. One is to use a constitutional power under Article 49.3 to push the legislation through parliament without a vote, as for previous budgets.

My reforms changed the welfare system to make work pay and brought workless households to an all-time low. But because of the post-Covid collapse in vetting and rise of health-related welfare claims, millions of workers could take home more from welfare than wages after tax. This is an outrageous state of affairs. The system must stop writing off thousands every day and incentives to work need to be restored to end this ruinous waste of human potential.

Guten Morgen from a wet and dreary Bonn. We are expecting the five suspects who were arrested on Monday on suspicion of violating sanctions against Russia to appear in court today and we will be looking into a new report about poverty in Germany. German Chancellor Friedrich Merz is also expected to host a carnival reception at the Chancellery in Berlin, which will hopefully provide some interesting pictures. For this and more, keep reading.

While many economists believe it will return to stronger growth in 2026, hopes of a quick recovery are fading amid doubts over Berlin's planned investment spree under Chancellor Friedrich Merz. Before Christmas, Germany's Bundesbank lowered its growth forecast for 2026 to 0.6%, down from its previous June forecast of 0.7%. However, the central bank raised the forecast for 2027 to 1.3%, predicting that the pace of economic activity would pick up from the second quarter of 2026.