Upside economic surprises from the United States and the eurozone have underscored the fact that the global economy has performed better in the fourth quarter of last year (4Q22). The US economy expanded by 2.9% (annualized), while the eurozone avoided a recession, with output expanding by 0.1%, quarter-on quarter. 

FIG.1 THE IMF UPWARD REVISIONS

(Marsha Vande Berg is director of MJGlobal Insights, a resource for corporate and fund decision-makers when shaping their dynamic sustainability stakeholder narratives. The former CEO of the Pacific Pension & Investment Institute, Marsha has worked with pension executives worldwide. A Stanford University Distinguished Careers Fellow and author of MJGI Briefs, you can reach her at linkedin.com/in/mjvb and follow her @MarshaJVB.)

By Marsha Vande Berg

TOWARDS A MODERN MONETARY POLICY.

If you think the case for central banks holding cryptocurrencies in their reserves is farfetched, think again. They are already making detailed preparations.

A weaker dollar, falling interest rates, lower inflation and oil prices are offering a welcome, albeit temporary relief to emerging markets.

Demonization and its economic consequences, and a peek ahead to the 118th Congress

The dollar has reversed its seemingly inexorable rise, with the weighted average dollar index falling from its 10-year high at the end of September. While it is too early to detect a trend, this development, alongside a softening of interest rates, is a welcome reprieve for emerging markets and low-income countries.

A reckoning in the digital asset industry that started in June after the collapse of improperly collateralized investment assets gained new urgency in November. Following the professional and possibly legal improprieties that led to bankruptcy and chaos at the FTX cryptocurrency exchange, the industry is regrouping and putting distance between legitimate market participants and the grifters.

The Bali Summit is occurring at a time of intensifying challenges facing the global economy.