Economics after dark

Posted by: Paul Donovan

15 Oct 2020

Daily update

  • Concerned by the night time behavior of the pandemic, French President Macron imitated Buffy the Vampire Slayer and ordered a curfew for nine French cities. Restrictions have a negative economic effect, but people have learned to adapt. The economic impact of fear of the virus is greater than restrictions.
  • France and the Netherlands have issued a joint paper urging the EU to consider breaking up large tech companies. This may cause problems with the US. In the fourth industrial revolution, it is what you do with technology, not the technology itself that matters. The size of the consumer market gives the EU considerable power over technology use.
  • The IMF has joined the main central banks of the world in urging a fiscal not a central bank pandemic response. The pandemic requires the hammer of fiscal policy. Calling for the feather duster of a central bank policy achieves nothing, however much markets want to be tickled.
  • US initial jobless claims come as the economy transitions from hiring by companies with a future to firing by companies in structural decline. Assorted economies' price data is not especially interesting. The interminably tedious EU-UK divorce is never interesting, and will continue beyond the artificial deadline (to no one's surprise).

Explore more CIO Daily Updates