Economy Forward

  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...

  Article's purpose and background The purpose of this article is to present a conceptual line of thoughts on the possibility of evolving a balanced trade-based economic management model in the world in response to the new trade policy being implemented by the US President Donald Trump (Read here the previous article on this subject). The trade policy announced b y the President Trump  through reciprocal tariffs and universal tariff is not an isolated policy to ease the US trade deficit, but a key element in the country's new macroeconomic and governance model being introduced for building a new domestic economy and society  highly protected  from foreign country risks . Four other major elements of the new economic policy are as follows. Protecting the borders to prevent illegal immigration, deportation of illegal and concerned immigrants and new immigration policy to protect jobs and livings standards for the US citizens. Cutting wasteful spending and corruption of...