Best Blogs of the Week #271
AB – Five Ways Populism Could Impact Investors – A greater willingness to use fiscal stimulus alone has the potential to lift inflation, particularly because central banks are likely to keep interest rates low to ease the process. Against this background, populism could make a stronger political case for aggressively pursuing growth, which would increase inflationary pressures.
Aberdeen – All aboard the gloom train? – The OBR has undertaken a “stress test” of the public finances to model the effects of an economic downturn. The result? A resounding fail. Describing the potential fiscal effects as “severe,” the OBR warned that the deficit would rapidly rise in the event of a recession. And Brexit could well make things worse. The OBR noted that even a small drop-off in economic activity could have a big impact on the public purse. In comparison with a fall in Britain’s underlying growth rate caused by reduced European trade, any “divorce bill” paid to the European Union (EU) would pale into insignificance.
American Century – Impact Investing: Making Good With Your Money – Impact investing can be summed up as investing to make a difference, or to be a financial force for good. How that good happens is where descriptions start to diverge.
