الوسم: Inflation
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EU with sticky inflation and Malta’s inflation at 7% in February
Inflation in Europe is sticky with the February average at 8.5%. Note that Malta’s inflation rate is at 7% because of subsidies on electricity bills offsetting the premium being paid by the Maltese government over its energy supplies. I don’t have the time to do the maths, but if you remove the electricity bills subsidies…
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Inflation is still high and elevated
The reality on the ground is very different from what was portrayed in Robert Abela’s shallow speech, last Sunday. Inflation in Malta is still highly elevated, and this is despite the fact that energy inflation is subdued by government subsidies. The problem with the latest reading of the Harmonised Index for Consumer Prices is that…
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Pouring oil on the fire
Here’s some basic economics 101. The reason why central banks increase interest rates during an inflationary environment is to reduce the money supply and decrease demand. In a recessionary environment, the central bank would be expected to reduce interest rates so as to increase the money supply and increase economic activity to push employment and…
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Let’s talk about Nord Stream
Apparently, there’s a lot of talk by the pro-Russian propagandists that Europeans are ashamed of speaking about Nord Stream given they don’t want to admit that Europe is a vassal of the US. This is a very convenient way of psychologically trying to drive a wedge between the Atlantic alliance. The narrative that Europe is…