Author: John Cassar White

For almost two decades, the global economy has been administered a potent steroid – lowinterest rates. There is no doubt that this has prevented some economies from falling into a depression, as first the financial crisis, the stagnation in the EU economies and then the COVID pandemic forced central banks to use monetary policy to help businesses survive. The trillions of dollars and euros pumped into the global economies in the last two years will sooner or later give rise to high inflation. However, many economists think that this will be a very temporary experience. A Financial Times opinion poll…

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Universities have turned communication, probably one of the oldest human skills, from an art into a science. Students in business and politics courses are trained to hone their communication skills with their clients, colleagues, the public, and the world at large in a way that is convincing. Good communication should be about saying what we mean and mean what we say. Being eloquent and articulate are virtues that we need to treasure. Resorting to language wizardry like phoney rhetoric is often no more than a strategy to compensate for a vacuum of ideas. These last few decades, we experienced the…

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No economic growth model is immune to the effects of sociopolitical as well as technological disruption. Globalisation is beginning to lose its appeal because of new socio-economic realities that are evolving.  The fall of the Iron Curtain ushered in an era of trade liberalisation. China joined the World Trade Organisation. Politicians in Western countries abandoned protectionist policies and businesses started treating labour as a commodity that could be sourced from low-cost countries. The end of the last century and the beginning of this century saw a revolution in transport in the form of ‘containerisation’. Items such as colour televisions, cars…

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In the last 18 months, the European Commission and the European Central Bank have used all their monetary and fiscal tools to manage the economic crisis, even if they argue that they have more weapons in their armoury. We will soon be entering the post-pandemic phase where battered econo­mies need to start rebuilding their strengths. The collateral damage caused by friendly fire during the crisis stage must be acknowledged and fixed as early as possible. It is ultimately taxpayers who have to foot the bill of the pandemic rescue mission. Clear indications are emerging on the more significant post-pandemic risks…

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We all feel important to ourselves and our small circle of family and friends. This is a natural self-preservation instinct that makes us strive for success in life. But when our sense of self-importance becomes warped, we risk seeing the world around us as populated with big people and little people. A recent news feature relating to the retirement of a cleaner from a UK bank made news in that it showed how ultimately little people are just as important as big people. Julie Cousins worked as a cleaner in a bank. She decided to retire at the age of…

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The global economy has benefitted from four decades of low inflation after high inflation dominated most of the 1970s. Today the debate on whether a return of high inflation is inevitable rages on. Politicians and, surprisingly, central bankers sing from the same hymn sheet. After 18 months of a global economic recession, and mindful of the destructive effect of wrong policy decisions after the 2008 financial crisis, they act as cheerleaders to boost the shattered morale of COVID weary people. While many Germans still have an almost genetic phobia of high inflation, their finance minister, Olaf Scholz, told journalists that…

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