Nobel Prize in economics: What is auction theory and why is it important? October 12, 2020 US academics Paul Milgrom and Robert Wilson have won the 2020 Nobel Prize in economics for their groundbreaking work on the theory and practice of auctions. Milgrom and Wilson, 72 and 83 respectively, are both professors at Stanford University in California. They will split the 10m krona (£850,000) prize and each receive a gold medal. [...]
Collapse of global digital tax talks could cost $100bn, OECD warns October 12, 2020 The global economy could shed more than one per cent of output if international talks to rewrite cross-border tax rules break down and trigger trade wards, the OECD warned today. Nearly 140 countries agreed last week to extend talks on the first major rewriting of cross-border tax rules in a generation to mid-2021 after the [...]
We do not need to compromise the economy to fix the environment October 12, 2020 Overwhelming scientific evidence tells us that the climate is already changing. If we are to limit global warming to 1.5 degrees and avoid the more extreme effects on our environment, averting potentially devastating consequences, we need to act now. And that is what Canada Corporation is doing. Last week, it launched its [...]
Act now to close the education gap — or our economy will pay the cost for years to come October 12, 2020 If there were ever any doubt about the full cost of closing schools, the answer is now clear. It is a vast price — and one that will have to be paid by the nation on both a human and a financial level for many, many years to come. Alongside the mounting national debt being [...]
Bank of England asks UK banks about readiness for negative rates October 12, 2020 The Bank of England has asked UK banks for information about their readiness for zero or negative interest rates, following its announcement last month that it was considering taking rates negative if needed. In a letter today, deputy BoE governor Sam Woods told lenders: “we are requesting specific information about your firm’s current readiness to [...]
Bank of England’s use of fast data under fire after weak GDP figures October 9, 2020 The Bank of England’s “reliance” on fast payments data that fed into upbeat predictions has come under fire after figures showed the UK economy performed much worse than expected in August. The Bank has repeatedly referred to data from its Chaps payment system, which reflects sales companies make through card purchases, during the coronavirus pandemic. [...]
Coronavirus recovery stalls as UK economy grows just 2.1 per cent in August October 9, 2020 The UK economy grew at just 2.1 per cent in August as the country’s economic recovery showed signs of stalling. Although the figure marked the fourth straight month of growth, it was considerably lower than had been expected. As a result, GDP remains 9.2 per cent lower than it was before the pandemic struck in [...]
Almost a fifth of ALL US dollars were created this year October 8, 2020 About 20 per cent of all US dollars were created this year. The Federal Reserve has printed unprecedented amounts of money to support the coronavirus-stricken economy. It has sparked debates about inflation and helped asset prices soar. Data from the Fed shows that a broad measure of the stock of dollars, known as M2, rose [...]
New US jobless claims flatline as recovery slows October 8, 2020 The number of new US jobless claims stayed roughly flat last week in the latest sign that the country’s economic recovery is slowing as it heads into the autumn. Department of Labor (DoL) data showed that 840,000 Americans filed new jobless claims in the week ending 3 October, down just 9,000 from the week before. [...]
BoE gives banks all-clear but warns them to keep up support October 8, 2020 The Bank of England has warned lenders that reducing their support to households and businesses “would be costly” for the economy and for banks themselves. It came as the Bank’s Financial Policy Committee (FPC) said the UK’s lenders were strong enough to weather the rest of the coronavirus storm – even if unemployment soared to [...]