Economy Forward

  Article's purpose and background This short article sheds some lights how the present management of the Fed (the US central bank) has failed in the maintenance of so-called its independence, given its highly theoretical and arbitrary approach of the monetary policy framework.  This failure has been revealed by the current conflict between the Fed and the President Donald Trump which questions the reality of the central bank independence. The central bank independence is nothing but a hypothesis built by monetary economists who fail to understand that central banks and underlying monetary systems have been built and operate on money created on fiscal operations and debt. Therefore, the background of the article is summarized as follows. The origin of the present paper currency-based monetary systems operating in the world is the private bank notes and lending business. However,  in early 20th century, governments nationalized such monetary systems with the creation of fi...

Article's purpose and background The purpose of this short article is to highlight that the objective of the US trade deals being negotiated at present is to make the US an export economy primarily through advanced manufacturing products in place of the present import economy.  Accordingly, trade deals are being designed to rebalance the global trade and economy in order for the US to become the leading export economy in the world. This is revealed from several official interviews of the US authorities such as the the US President, Treasury Secretary and Commerce Secretary, circulated in the media.  Therefore, this article is primarily based on views expressed by the US Commerce Secretary at a recent interview with CNBC ( Watch the interview here) . However, national leaders of many countries are seen making political statements that deals are being finalized to their favour to impress the public. This is completely wrong as the US has no interest other than cutting its trade ...

  Article's Purpose and Background This short article highlights why central banks making losses on the business of money printing is unjustified and unethical even in common sense in modern monetary economies. Therefore, this article is in the following background. It has now become a general practice for many central banks led by the US Federal Reserve, the world's largest and most influential central bank, to report massive losses. This is a puzzle why central banks make losses although they fund their operations through the monopoly printing of money or issuance of fiat money without any business rules and regulations. In contrast, banks who carry on business through the creation of money are required to make a sufficient profit if they are to stay in the business within rules stipulated by central banks as bank regulators. In economics, any business must make at least normal profit or be breakeven to escape the closure. However, central bank can continue with any amount of...

  Article's Background This short article highlights the bleak future of the IMF and World Bank  ahead  as a result of the President Donald Trump's new trade and governance policy for the American economy. The US Treasury Secretary Scott Bessent at a recent public forum heavily criticized the failure of the IMF and World Bank to deliver their founding roles envisaged for the global economic and monetary order and balance. Accordingly, present trade turmoil is a result of their failure ( Listen to the speech here) . He stated that the US would back both the institutions so long as they get reformed back to be IMF and World Bank and respective management and staff are accountable to respective roles. The IMF Managing Director's presentation made at the IMF-World Bank Spring Meetings held on 17 April also backed the US new trade policy as an outcome of the unfair international economic system prevailing at present ( Read the article with the presentation) . Accordingly, the ...

  Article's Purpose This short article is to highlight how the IMF changes its outfit to show the support to the US President Donald Trump's new economic policy which is to be driven on the US trade deals negotiated with countries based on its new tariff policy announced on 2nd March 2025. The article's source is the presentation made by the IMF Managing Director Kristalina Georgieva at the "2025 IMF-World Bank Spring Meetings" on 17 April 2025 on the title of "Outlook for the Global Economy and Policy Priorities." (Access the Video presentation here) . As the most part of the presentation is the IMF's normal economic management rhetoric, the article will select only the statements or ideas relevant to the article's topic.   The presentation's key message sent across to the IMF members and the World covers; supporting the Trump's new economic policy based on the present unfair global economic system, rejecting the idea of a possible globa...