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Archive for 12. November 2019

The High Stakes of the Coming Digital Currency War Nov 11, 2019 Kenneth Rogoff

Posted by hkarner - 12. November 2019

Kenneth Rogoff, Professor of Economics and Public Policy at Harvard University and recipient of the 2011 Deutsche Bank Prize in Financial Economics, was the chief economist of the International Monetary Fund from 2001 to 2003. He is co-author of This Time is Different: Eight Centuries of Financial Folly and author of The Curse of Cash.

Just as technology has disrupted media, politics, and business, it is on the verge of disrupting America’s ability to leverage faith in its currency to pursue its broader national interests. The real challenge for the United States isn’t Facebook’s proposed Libra; it’s government-backed digital currencies like the one planned by China.

SOUTH BEND – Facebook CEO Mark Zuckerberg was at least half right when he recently told the United States Congress that there is no US monopoly on regulation of next-generation payments technology. You may not like Facebook’s proposed Libra (pseudo) cryptocurrency, Zuckerberg implied, but a state-run Chinese digital currency with global ambitions is perhaps just a few months away, and you will probably like that even less.

Perhaps Zuckerberg went too far when he suggested that the imminent rise of a Chinese digital currency could undermine overall dollar dominance of global trade and finance – at least the large part that is legal, taxed, and regulated. In fact, US regulators have vast power not only over domestic entities but also over any financial firms that need access to dollar markets, as Europe recently learned to its dismay when the US forced European banks to comply with severe restrictions on doing business with Iran.America’s deep and liquid markets, its strong institutions, and the rule of law will trump Chinese efforts to achieve currency dominance for a long time to come. Den Rest des Beitrags lesen »

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Europe’s Wage-Price Puzzle

Posted by hkarner - 12. November 2019

By Richard Varghese

Does higher wage growth fuel inflation? In Europe, that has historically been the case. But the link between wage growth and inflation has weakened in recent years amid low inflation expectations, robust corporate profitability, and strong competitive pressures.

The price of labor—namely wages—is rising at a robust pace, especially in the European Union’s newer member states. Yet, surprisingly, inflation has barely risen. We set out to shed light on this puzzle in Chapter 2 of the Regional Economic Outlook: Europe.

It is likely that robust wage growth will not meaningfully spur inflation in the near future.

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The Power of Combining 5G and AI

Posted by hkarner - 12. November 2019

Date: 11-11-2019
Source: The Wall Street Journal By James Rundle and Angus Loten

Putting the two technologies together will change everything from drug making to brewing beer

Among other advantages, 5G networks let internet-connected devices transmit much more information much more quickly.

The convergence of artificial intelligence with internet-connected machines and superfast 5G wireless networks is opening possibilities across the planet—and even in outer space.

These advancements are allowing farmers to pick the optimal way to grow crops, pharmaceutical companies to shorten the development times of new drugs, researchers to track pandemics, and cities to manage their resources in a manner that was pure science fiction at the turn of the millennium.

Taken alone, these technologies have enormous potential in their own right, but combined, experts say, they have the power to transform industrial technology on a scale not seen since the advent of steam power.

The key ingredient, the experts say, is 5G. It gives developers the ability to scale up projects more easily because there’s no need to build extensive fiber-optic networks to keep data flowing. What’s more, 5G networks let internet-connected devices transmit much more information much more quickly—which in turn is spurring developers to come up with more advanced machines that can take maximum advantage of the capability. Den Rest des Beitrags lesen »

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