Tag: IMF

EXPLAINER: Why rising rates are unsettling Wall Street

Mary Pat Campbell

Link: https://apnews.com/article/coronavirus-pandemic-financial-markets-stock-markets-inflation-prices-96e01a1db876bd4ad7e183e8cb4874e8

Excerpt:

WHY ARE INFLATION AND GROWTH EXPECTATIONS RISING?

Coronavirus vaccines will hopefully get economies humming this year, as people feel comfortable returning to shops, businesses reopen and workers get jobs again. The International Monetary Fund expects the global economy to grow 5.5% this year following last year’s 3.5% plunge.

A stronger economy often coincides with higher inflation, though it’s been generally trending downward for decades. Congress is also close to pumping another $1.9 trillion into the U.S. economy, which could further boost growth and inflation.

Author(s): STAN CHOE and ALEX VEIGA

Publication Date: 26 February 2021

Publication Site: Associated Press

Your Credit Score Should Be Based on Your Web History, IMF Says

Mary Pat Campbell

Link: https://gizmodo.com/your-credit-score-should-be-based-on-your-web-history-1845912592

Excerpt:

In a new blog post for the International Monetary Fund, four researchers presented their findings from a working paper that examines the current relationship between finance and tech as well as its potential future. Gazing into their crystal ball, the researchers see the possibility of using the data from your browsing, search, and purchase history to create a more accurate mechanism for determining the credit rating of an individual or business. They believe that this approach could result in greater lending to borrowers who would potentially be denied by traditional financial institutions.

At its heart, the paper is trying to wrestle with the dawning notion that the institutional banking system is facing a serious threat from tech companies like Google, Facebook, and Apple. The researchers identify two key areas in which this is true: Tech companies have greater access to soft-information, and messaging platforms can take the place of the physical locations that banks rely on for meeting with customers.

Author(s): Rhett Jones

Publication Date: 18 December 2020

Publication Site: Gizmodo