The following is the Enterprise credit outlook report 2021 From Music recommended by recordtrend.com. And this article belongs to the classification: global economy , research report.
Companies still need fiscal and monetary policy responses, but their long-term credibility may be tested:
Sustained financial support in line with monetary policy is a condition for the successful realization of sustained economic recovery. The extraordinary emergency fiscal response to the economic recession has made the public financial situation worse than the financial crisis in 2008 / 09. According to the International Monetary Fund, the fiscal deficit of the group of seven countries (the United States, the United Kingdom, France, Germany, Japan, Italy and Canada) will reach 16% of GDP in 2020, which is 1.6 times that of 2009. According to the International Monetary Fund, the projected deficit for 2021 is 7.5%.
The G7 deficit is unlikely to disappear soon:
In this case, the continuous support of monetary policy is a necessary condition. Given the large amount of debt accumulated, keeping debt service to a minimum helps to make this additional debt affordable. Over a long period of time, the policy interest rate is likely to remain at a low level, regardless of the level of each major region, and the quantitative easing policy may be maintained to prevent the overall financial situation from an unwarranted tightening and the real rate of return from an unsustainable growth.
Inflation is not over:
When observing market-based inflation expectations, the impact of vaccine availability promotes long-term inflation expectations. In the United States, the 10-year break even inflation rate has rebounded to the level of June 2019, but it is still below the 2% target set by the Federal Reserve. Germany’s 10-year breakeven index has also risen sharply since mid November, but has fallen well below 1%. The rising trend of commodity prices along with economic recovery may help to partially narrow the inflation gap, but in order to achieve this result, the most likely situation in the next few years is the sustained support of monetary policy.
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