Massive stimulus plans combined with rising production costs could lead to expectations that inflation will rise. And that alone could trigger an inflationary spiral not seen in 25 years.
Yes, the bank would effectively pay you to borrow money. But negative interest rates won’t please savers, nor will they meet the big challenges of economic recovery.
Massive borrowing to fund NZ’s economic recovery due to COVID-19 cannot be written off without the risk of worsening the crisis it was designed to meet.
Although COVID-19 measures have had a negative impact on food supply in Nigeria, there are other factors responsible for the dramatic rise in food prices.
Zimbabwe wants to issue a sovereign bond to raise $3.5 billion it has agreed to pay as compensation to white farmers, but the economic and political conditions aren’t conducive to such an issuance.
Given the structural limitations of Canadian federalism, the use of the Emergencies Act during the coronavirus pandemic could cause conflict between provincial and federal governments.