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TUESDAY 21 March 2023 Issue No. 29
A NEW THINKING
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When a market liquidity and/or funding liquidity crisis occurs at a moment when inflation is above-target, tension between the objectives of central banks – price stability and financial stability – is inevitable. In such cases, I believe that financial stability must come first, because it is a precondition for the effective pursuit of price stability. But this does not mean that the central bank should cease or suspend its anti-inflationary policies when
threatened with a banking crisis or similar systemic stability risk. The conflict between the objectives of price stability and financial stability should be manageable by using the central bank’s policy rate to target inflation, and by using the size and composition of its balance sheet as a macroprudential policy tool to target financial stability. Credible communication is essential to achieve both objectives. Financial stability in a large advanced economy is not materially
impacted by a 50-basis-point increase in the risk-free short nominal rate of interest. It is impacted by the interrelated liquidity and credit risk premia and the vanishing would-be purchasers and lenders in illiquid financial markets – when credit rationing rules the roost. The Bank of England got this right last year when, during a period of monetary-policy tightening brought on by then-Prime Minister Liz Truss’s incoherent policies, it engaged in temporary purchases of long-dated
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Tuesday 14 March 2023
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SaXGL Vtate-oZQHG RLO JLDQW $raPco Head of Digital and Innovation at Stanbicoil Bank Ghana, Estellehas Asare, Saudi giant Aramco anhas advised young women to take advantage of technology grow $161.1bn (£134bn) forto 2022, their businesses. helped by soaring energy prices She said this at the Women in Busiand bigger volumes. ness 2023 Roundtable event held at Ittherepresents a 46.5% rise for SBIncubator, one of the bank’s the 2023state-owned IWD activities.company, compared with lastimportance year. Speaking on the of digitization to business growth, Estelle Asare said, energy prices following “As women, let’sspiked look beyond the Russia’s invasion challengesfull-scale our businesses may beof Ukraine in February 2022. going through and have a soluAmerica’s ExxonMobil made tion-mindset to enhance our digital $55.7bn, and We Britain’s recompetencies. need toShell take advantage $39.9bn. of the available technoloported gies to grow our businesses. Aramco also declared aCusdivi-
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Gulf States Institute in Washingcult for Aramco not to perform strongly in 2022.”
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shocking for a company to the increase in energy prices of human rights abuses: resulting from Russia’s war of its involvement & in the $161bn in a single year through aggression against Ukraine.” ! the sale of fossil fuel – the single Saudi Arabia is the largest Yemen, the murder in largest driver of the climate producer in the oil cartel 2018 of journalist Jamal - crisis”. Opec (Organization of the Pe- Khashoggi, for jailing dissults were “underpinned by She added: “It is all the more troleum Exporting Coun- sidents, and for widestronger crude oil prices, shocking because this surplus tries). spread of that capital haveuse known the Minority Leader Dr. Ato Forson has should higher volumes sold and imwas amassed during a global On 16th March 2023, Decathlon strategic and creative marketing kingdom has March But thethe Gulf punishment. deadline for an IMF bailencouraged President to be cost-of-living crisis by been condemned for a range Ghana, Kawukudi was abuzz with communications agency,and thataided is more innovative and not rely much out has been missed. products”. excitement as the community of situated in Kanda for the past 11 on the International Monetary Fund Aramco’s CEO years. Kanda camepresident out in largeand numbers (IMF) to turn around the ailing econ- The Minority Leader made this Amin that for theNasser 'Love said: Brewed“Given in Kanda' omy as a deal with the fund may not known during a debate on the we anticipate and gas will The goal of the initiative was to health screening oil initiative. State of the Nation Address on happen at the end of the month. remain essential for the foresee- encourage preventative healthFriday. able future, risks of The event wasthe organized by underReZul- care among the residents of According to him, the President investment inanour industry are Kanda and Emmanuel Eye Clinic tz Advertising, award-winning dend of $19.5 billion for the Oc- real – including contributing to 2 3 4 tober to December quarter of higher energy prices.” To address those challenges, he quarter of this year. said, the company would not Most of that dividend amount only focus on expanding oil, gas