Moody’s Talks – Inside Economics
Greenland and The London Consensus
Moody’s Talks – Inside Economics
•January 23, 2026•1h 4m
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Moody’s Talks – Inside Economics•Jan 23, 2026
Why It Matters
Understanding the geopolitical tug‑of‑war over Greenland and the underlying economic motives offers insight into how strategic resources shape international relations. The discussion of income inequality and the London Consensus provides policymakers and listeners with fresh policy options at a time when nationalism and economic disparity are reshaping global governance.
Key Takeaways
- •Q3 GDP revised to 4.4% annual growth.
- •PCE inflation rose to 2.8% year‑over‑year.
- •Personal saving rate fell to 3.5%, historic low.
- •Underlying GDP growth estimated around 2‑2.5% potential.
- •Greenland crisis underscored climate risk and geopolitical tension.
Pulse Analysis
The latest U.S. macro releases paint a mixed picture. Third‑quarter GDP was nudged up to a 4.4% annualized pace, confirming resilient consumer spending, while the Fed’s preferred PCE inflation gauge ticked higher to 2.8% year‑over‑year. The University of Michigan’s confidence index showed a modest rebound, yet the personal saving rate plunged to 3.5%, a level rarely seen since the pandemic’s peak. Housing signals remain soft, with pending home sales slipping and mortgage rates climbing back toward six percent, suggesting that the wealth‑effect‑driven spending surge may be waning.
Beyond headline numbers, analysts debate the economy’s underlying momentum. Stripping away data quirks, most estimate real‑time growth hovering between 2.0% and 2.5%, close to the economy’s potential rate. Productivity gains—partly attributed to early AI adoption—appear to offset a sluggish labor‑force expansion driven by tighter immigration policy. This balance keeps the unemployment rate modest but rising, hinting that future policy levers may shift from demand‑stimulus to supply‑side enhancements, especially as the Federal Reserve approaches its next meeting with markets largely pricing in a status‑quo stance.
Internationally, the episode turned to two high‑profile topics: the Greenland crisis and the emerging "London Consensus" framework. Andre Velasco’s new book argues for a coordinated, climate‑aware policy agenda anchored in the LSE’s public‑policy tradition, while the rapid ice‑sheet melt in Greenland underscores the urgency of such coordination. Guest Gaurav Ganguly added a global‑economics lens, noting that geopolitical shocks and climate risks are reshaping trade patterns and fiscal priorities worldwide. Together, these discussions highlight how domestic data, productivity trends, and global challenges intersect to shape the next phase of economic policymaking.
Episode Description
After a quick review of this past week's economic data, Professor Andrés Velasco, Dean of the School of Public Policy at the London School of Economics, joins the Inside Economics podcast, along with Head of International Economists, Gaurav Ganguly. The group dissects the U.S. push to acquire Greenland and Europe's response to it. They discuss President Trump's reaction to international dissent and conclude that TACO is a market-driven phenomenon. The discussion delves into income inequality worldwide, and the team debates how much it influences election outcomes. Finally, they discuss the London Consensus and how it offers alternative public policy choices in an era of rising nationalism and increasing income inequality.
Guests: Andres Velasco, Dean of the School of Public Policy and Gaurav Ganguly,Head of International Economists
Learn more about Andres's book by clicking here
Listen to Global Economy Unwrapped podcast on Apple Podcasts and Spotify
Hosts: Mark Zandi – Chief Economist, Moody’s Analytics, Cris deRitis – Deputy Chief Economist, Moody’s Analytics, and Marisa DiNatale – Senior Director - Head of Global Forecasting, Moody’s Analytics
Follow Mark Zandi on 'X' and BlueSky @MarkZandi, Cris deRitis on LinkedIn, and Marisa DiNatale on LinkedIn
Questions or Comments, please email us at [email protected]. We would love to hear from you.
To stay informed and follow the insights of Moody's Analytics economists, visit Economic View.
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Show Notes
Episode Summary
After a quick review of this past week's economic data, Professor Andrés Velasco, Dean of the School of Public Policy at the London School of Economics, joins the Inside Economics podcast, along with Head of International Economists, Gaurav Ganguly. The group dissects the U.S. push to acquire Greenland and Europe’s response to it. They discuss President Trump’s reaction to international dissent and conclude that TACO is a market‑driven phenomenon. The discussion delves into income inequality worldwide, and the team debates how much it influences election outcomes. Finally, they discuss the London Consensus and how it offers alternative public‑policy choices in an era of rising nationalism and increasing income inequality.
Episode Notes
After a quick review of this past week's economic data, Professor Andrés Velasco, Dean of the School of Public Policy at the London School of Economics, joins the Inside Economics podcast, along with Head of International Economists, Gaurav Ganguly. The group dissects the U.S. push to acquire Greenland and Europe’s response to it. They discuss President Trump’s reaction to international dissent and conclude that TACO is a market‑driven phenomenon. The discussion delves into income inequality worldwide, and the team debates how much it influences election outcomes. Finally, they discuss the London Consensus and how it offers alternative public‑policy choices in an era of rising nationalism and increasing income inequality.
Guests
Andrés Velasco, Dean of the School of Public Policy, and Gaurav Ganguly, Head of International Economists
Learn more about Andrés’s book
Listen to Global Economy Unwrapped podcast
Hosts
Mark Zandi – Chief Economist, Moody’s Analytics
Cris deRitis – Deputy Chief Economist, Moody’s Analytics
Marisa DiNatale – Senior Director, Head of Global Forecasting, Moody’s Analytics
Follow Mark Zandi on X and BlueSky @MarkZandi, Cris deRitis on LinkedIn, and Marisa DiNatale on LinkedIn.
Contact
Questions or comments? Email us at [email protected].
To stay informed and follow the insights of Moody’s Analytics economists, visit Economic View.
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