monetary policy

“Governments worldwide are unleashing fiscal support measures, but not all fiscal packages are the same,” said Chua Hak Bin, a senior economist at Maybank Kim Eng Research in Singapore.

Investors must recognise that with policy rates near their effective lower bound and fiscal policy becoming a more important driver, that the equity-bond correlation can become less negative.

overnments around the world are giving priority to measures that limit the spread of disease and save lives, including the complete lockdown of a region (as in China) and even of entire countries (Italy, Spain, and France, for example).

For a decade, the global economy has grown fast enough to avoid recession, but not fast enough to overheat. The boom/bust cycle has been conquered.

The coronavirus is likely to hurt Singapore’s further economic growth this year. Already, the city state in 2019 had recorded its lowest growth rate in a decade.

The US has reignited geopolitical tensions with Iran, even as the trade war with China goes on. While there are signs of a broader global economic recovery, central banks have little room to manoeuvre if growth stalls again.

LONDON (Dec 27): When it comes to the outlook for emerging markets in 2020, the bottom line is maddeningly simple: “It’s complicated.” There are a number of reasons for this.

(Dec 13): Recent jumps in equity prices and bond yields suggest that recession fears are receding. But the global economic expansion cannot last forever, and when the next recession comes, central banks may not be adequately prepared to respond. Enhancing

(July 22): A rapid deterioration in Singapore’s economic data has fuelled speculation the central bank will ease monetary policy. The result may be higher interest rates and bond yields.

SINGAPORE (July 15): One of the remarkable features of post-war economic history has been the taming of inflation in the US and many other countries since the mid-1980s. Before then, the US inflation rate (based on the deflator for personal consumption ex