Advanced economies in the West are facing the twin headwinds of rising government debt and persistent inflation, writes RSM Chief Economist Joe Brusuelas in the November issue of The Real Economy.
With most of the G7 nations deep into a postpandemic interest rate regime change, conditions are coalescing for higher inflation across most of the advanced economies, especially as the fiscal authorities embrace higher government spending.
This new economic landscape is posing a challenge for central banks, which are trying to strike a balance between fostering growth and maintaining price stability, and for middle market businesses, which must contend with elevated input costs.
Also in this issue, RSM’s Peter Ramer looks at the back-to-school shopping season and what it says about the prospects for the all-important holiday shopping season for consumer products companies. Holiday spending, he writes, will mirror back-to-school trends: fewer purchases among consumers, select splurges and promotion-driven buys.
Central banks in the G7 economies are dealing with persistent inflation within a slowing global economy—also known as stagflation.
Finally, in our Market Minute series, Brusuelas looks at a global economy in transition, from the American dollar’s dominance in foreign exchange markets to the longer time it is taking rate cuts by the Federal Reserve to show up in the real economy.
Read our analysis of these topics in the latest edition of The Real Economy.
Numerous regulations are making sustainability a larger compliance issue.
Tax incentives are one part of companies’ broader decarbonization efforts.
Training is the most common action taken toward compliance, but also the top hurdle.
The Real Economy Blog was developed to provide timely economic insights about the middle market economy. It is offered as a complement to RSM’s macroeconomic thought leadership, including The Real Economy monthly publication and the proprietary RSM US Middle Market Business Index (MMBI).
Middle market organizations, which make up the “real economy,” are too big to be small and too small to be big. They have distinct challenges and opportunities around resources, labor, technology, innovation, regulation and more.
