To many, the word “inflation” causes a knee-jerk reaction and a cringe. Most associate inflation with a negative trend for economies and buying power. Some inflation, however, can actually be a good thing, and that is why the Organization for Economic Cooperation and Development (OECD) is calling on world leaders to use demand-side models to actually spur on inflation.
Home sales and home prices are both rising, with sales showing a reversal of recent weakness that could indicate renewed strength in the American housing market.
Although economists warn that home prices are continued to price out a growing number of Americans, home sales rose 3.5% in February. Some parts of the country, however, are much weaker, as the Northeast saw a 0.2% decline in home sales. The Midwest was the strongest performer, with an 11.4% increase in sales. The South rose 2.1% from January, but actually fell from a year ago.
Kazakh authorities arrested six prominent people tied to a scandal involving the alleged intent to embezzle $1 million from state coffers, according to EurasiaNet. The arrests include an important media head, and critics charge that the government is suppressing free speech and freedom of the press. Kazakhstan’s economy has suffered in part from rampant corruption and inept management.
When a coal-fired plant in India destroyed the health, livelihoods, and property of farmers and fishermen in the region, they turned to international interest groups for help. Those interest groups, in turn, devised the strategy of taking the matter to court.
Of course, the plant itself had no real assets, but the institutions that provided their financing might. Therefore, they decided to take the International Finance Corporation (IFC), a private lending arm of the World Bank Group, to court in the US District Court in Washington D.C.
Personal incomes and spending are on the rise as higher oil prices boost costs and higher employment lifts wages. A new study by the Bureau of Economic Analysis showed that personal income rose $23.7 billion in total, or 0.2%, in the month of February. At the same time, personal consumption expenditures (PCE) rose 0.1%, or were up $11 billion.
Medical professionals announced a worldwide vaccine shortage as 1,100 Angolans suffer from yellow fever, according to CNN. The disease has spread from Angola to neighboring countries, including China, and officials require all travelers to be vaccinated before entering the Southern African country.
The conflict in the Middle East has displaced millions, cost the world economy billions, and taken thousands of lives. While most of the solutions to these problems suggested in the media tend to focus on military action, the World Bank is taking steps to deal with the aftermath of these conflicts.
A strong increase in America’s Gross Domestic Product supports optimistic forecasts for America’s economy, but weak jobs data indicates Americans are facing less job security than ever.
America’s GDP rose 1.4% in the 4th quarter of 2015, according to a new study by the Bureau of Economic Analysis. The third estimate for GDP was an improvement from the last estimate of 1.0% GDP growth, and is a result of stronger consumer spending in the American economy.
Several signs of weak demand in the American economy appeared this week, and the bad news was compounded by an increase in jobless claims. While Americans are buying less goods and services, especially less houses, Americans are also struggling to find and keep jobs. Initial jobless claims rose 6,000 to reach 265,000 this week, according to the Department of Labor, while continuing jobless claims fell slightly to 2.18 million.
President Alexander Lukashenko said this week that he does not wish to choose between Russia and the European Union, according to Reuters. Stronger EU ties would benefit the economy, but Belarusians rely on Russian business to sustain their economy. The EU issued sanctions on Belarus in 2010 in response to harsh crackdowns on political dissidents, but the sanctions were subsequently lifted in February 2016.
