Look forward to a new mediocre for the world economy
Look forward to a new mediocre for the world economy. Five years after the great recession, growth remains sluggish – conforming to the pattern of previous financial crises – but some countries suffer more than others. The U.S. has broken out of this malaise to the benefit of equities, but growth is lackluster because of […]
Inflation or deflation?
Inflation or deflation? The premise for inflation rests on the policy mix of large budget deficits and highly stimulative monetary policies. The Federal Reserve will do whatever it takes if U.S. growth slows to the point where unemployment rates start rising again. Democracies are prone to inflation because of the pressure to buy votes and […]
The recovery from a deep recession can be intense
The recovery from a deep recession can be intense. The proposition is even more acute in this recession, as continuing high levels of unemployment are accompanied by extraordinary issues of government policy and their unwind. Fundamentally, the asset at the heart of the crisis – housing – appears to be stabilizing in both the US […]