The new policy of average inflation targeting involves a loss of clarity. Its credibility is questionable. It means rather higher inflation than markets currently expect. Last month the Fed switched to alternative inflation targeting (AIT), a change covered in a Stein Brothers Comment at the time. However, the change bears…
Markets expect Chairman Powell to signal a shift towards ‘average inflation targeting’ AIT makes sense in many ways, but also has weaknesses The medium-term effect will be an acceptance of higher inflation Later today, Fed Chairman Jerome Powell will address (virtually, needless to say) the annual Kansas City Federal Reserve…
The post-COVID-19 world will see an increase in distance-working. But not everyone can or wants to work from home. Offices will remain but there will be less demand for them. Surplus CBD office space can be converted to residential use, with multiple benefits It always feels silly to intentionally position…
Economic data remains weak and Q2 GDP numbers will be awful almost everywhere But confidence is rising, if from low levels and frequently rising more than expected It is difficult to spot real time turning points, but it does seem that the recovery has begun Q2 GDP data will begin…
Output growth in the second half of 2020 and 2021 is likely to be well above trend Current inflation data is meaningless, but 2021 and 2022 will see high inflation This assumes that global lockdowns end over the summer This is a follow-up to The case for higher inflation published…
Over the past two months, broad money growth has surged in key world economies This monetary stimulus, part of the response to the COVID-19 pandemic, will remain in place Sustained double-digit broad money growth is inconsistent with subdued inflation (It is more than a year since I last published a…
In October 2019, I was interviewed by Cycle, a programme on MNB World. We discussed the world economy as well as that of Mongolia.
On 5th April 2019 I lectured on ‘How to forecast the world economy’ at the University of Cardiff Business School.
