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Adrian Blundell-WignallFinancial Review |
US government debt and the size of the collateral-based non-bank financial intermediaries sector need to lose weight. This should come first.
Oligopolies and a lack of foreign investment are driving up the cost of living, yet governments on both sides of the aisle are turning a blind eye.
Europe has a different monetary policy structure that leads to less extreme outcomes compared to anglo-saxon nations.
We need to stop subsidising the sector and bring back a resource rent tax to support the real determinants of long-term growth.
The administration is exacerbating the problems left over from the pandemic, risking inflation and recession.
It remains to be seen what risk triggers Trump 2.0 will bring and what contagion might flow within and between the regulated and NBFI sectors.