Economic insights

May 07, 2021

Pricing superpowers: Which sectors have them in the Eurozone?

In the long run, most sectors have (some) pricing power. But the lack of short-term pricing power means low inflation risk in the Eurozone.

May 05, 2021

Germany's constitutional court: reincarnation under the climate veil of ignorance

In recognizing that the fiscal burdens from Germany’s ambitious climate policies pile up only after 2030, its Constitutional Court could spark a tectonic shift for future climate action.

Apr 29, 2021

European households: the double dividend of excess savings

In 2020, “excess savings” stood at more than EUR450bn, or over 4% of GDP, thanks to reduced spending on services amid renewed lockdowns.

Apr 26, 2021

Equity markets: In search of Goldilocks’ inflation

Several factors point to reflation in 2021-2022, with a temporary overshooting ahead in the US and the Eurozone. Is this good news for equity markets?

Apr 22, 2021

Investment is back: Harder, better, faster, stronger?

In the short run, a demand catch-up and the reduction in spare capacities will drive a business investment recovery. But it could take up to four years to return to long-term growth trends.

Apr 19, 2021

European corporates: Cash-rich sectors get richer

The Covid-19 crisis has pushed up cash concentration among European non-financial corporates.

Apr 15, 2021

Demystifying the four horsemen of the inflation apocalypse

We expect inflation will only stage a temporary overshoot in the US and briefly hit the ECB’s “below, but close to, 2%” target in the Eurozone in 2021

Apr 12, 2021

Taper Tantrum in 2021-22: Beware of the TUCKANS

We find 7 Emerging Markets are particularly vulnerable to an eventual tapering of monetary policy by the US Fed.

Apr 07, 2021

Unleashing excess foreign exchange reserves to boost growth in Latin America

In 2021, Latin American countries could be holding "excess" FX reserves of around 8.8% of GDP, with an opportunity cost to economic activity as high as 0.7% of GDP.

Economic Insights