United States: Yellen Faces What Bernanke, Greenspan Couldn’t Do: Ease Bubbles
Bloomberg reports that incoming Federal Reserve Chairman Janet Yellen will be confronted with the significant challenge of helping grow the economy without letting accomodative policies create financial risk and asset bubbles.
India: Central Bank rises interest rate unexpectedly
Reserve Bank of India Governor Ragurham Rajan announced the rise of the benchmark repurchasing rate to 8%, up from 7.75%. The rise came by surprise to the markets, that expected no change in the rate. However, as the BBC News reports, the rise comes as a measure to contain inflation and the progressive depreciation of the rupee, which is considered to be dragging down the economy.
United Kingdom: Strong UK GDP figures expected for 2013
According to BBC, official GDP figures due to be published on 28 January, are expected to show that the UK’s economic growth in 2013 was the strongest one since the year before the financial crisis. However, economists expect the growth rate to remain well below 2007, when growth was 3.4%.
Argentina: Argentina Learns Limits of Opportunism
An interesting Bloomberg report about the recent mistakes of doing economic policy in Argentina.
Venezuela: Venezuela nears end of the road for gasoline subsidy
Venezuelans have enjoyed cheap gasoline for many years, but in this report the Guardian states the government has no choice but to gradually increase the price of gasoline. According to the report, the government spends more than USD 12bn a year subsidizing domestic gasoline sales.