Newell Palmer: Monthly Economic Notes – November 2019
The two main developments in the past month are:
1. More strident commentary from the IMF and central banks that monetary policy (whether adopting low interest rates or quantitative easing policies) are becoming less effective to support economic growth as interest rates are already very low, and that fiscal policy (via increased government spending and lower taxes) will have to step in. However, most governments have been reluctant to adopt looser fiscal policies to-date, but this may change in the coming year.
2. Growing realisation in the US and China that the ongoing trade dispute and escalating tariffs are impacting the US and Chinese economies, with signs that tariffs may be wound back and a trade agreement could be signed.Monthly-Notes-November-20191.pdf