There have been many definitions of fiscal dominance over the years, but one that explains it well comes from Daniel J. Ford:
"Fiscal dominance is an economic condition that occurs when a country’s debt and deficit levels are sufficiently high that monetary policy ceases to be an effective tool for controlling inflation. In fact, persistently high interest rates in an environment of perpetually large deficits actually risk exacerbating inflation". Another definition: "Fiscal dominance occurs when fiscal deficits become as significant as, or more important than, private sector lending and monetary policy in driving economic activity". Source: Lyn Alden
Canadian Prime Minister Justin Trudeau announces resignation
Justin Trudeau’s popularity has been at a historic low after voters and members of his own party turned against him following a turbulent period of speculation about his ability to govern the G7 country. Source: FT
Bitcoin vs. fiat
Source: ₿itcoinTeddy @Bitcoin_Teddy Disclaimer: These are not investment recommendations. Cryptoasset investments can be complex and high risk.
#leadership
Source: Robertson Hunter Stewart
Happy New Year
Invest in your health. It will buy you more time.
Quote by Sir John Templeton
Source: Brian Feroldi
An incredible coincidence: The Simpsons vs. Trump
In 2000, The Simpsons predicted that Donald Trump would become president of the United States. Although the most famous images come from a 2015 episode, the idea was raised much earlier. Source: Vertigo_Warrior on X
Morgan Stanley is leaving the Net-Zero Banking Alliance, the lender said on Thursday.
👉 Morgan Stanley (NYSE: MS) has become the latest financial giant to abandon the Net-Zero Banking Alliance, a UN-backed coalition aimed at aligning banks’ financing activities with global net-zero emissions targets. The move follows recent exits by Citigroup (NYSE: C) and Bank of America (NYSE: BAC), and earlier departures by Goldman Sachs Group (NYSE: GS) and Wells Fargo (NYSE: WFC), marking a significant retreat from collective climate commitments by some of the world’s largest banks. 👉 These high-profile defections, driven by intensifying political and market pressures, cast doubt on the ability of voluntary financial coalitions to sustain ambitious climate action in a polarized environment. 👉 Launched in 2021, the NZBA aimed to transform the financial sector’s role in combating climate change. As part of the broader Glasgow Financial Alliance for Net Zero, it united over 140 banks across 44 countries, with members committing to reduce greenhouse gas emissions linked to their financing activities and to achieve net-zero emissions by 2050. 👉 NZBA members pledged to set interim 2030 emissions targets for high-impact sectors, including energy, transportation, and heavy industry, aligning their portfolios with the 1.5°C warming limit set by the Paris Agreement.. Source: Bloomberg, thedeepdive.ca
