It would be fair to conclude that inflation expectations are moving up. But, at current levels, they will not concern the Federal Reserve all that much

While I understand why the Fed changed its monetary framework, I am unpersuaded it was a good idea.

It means driving while looking into the rear-view mirror.

The stock market is more than generously priced by historical standards, with bubble phenomena everywhere. The doctrines of “modern monetary theory” are highly influential, as well. 

All this together has strengthened lobbies for cheap money and big fiscal deficits, and weakened ones for prudence.

Martin Wolf 18 May 2021

https://www.ft.com/content/5d2aef18-e9c4-486a-8323-c5fc6addf5f7


Kommentarer

Populära inlägg i den här bloggen

Niklas Ekdal, bunkergängets apologet

Röd Öppning - Red Opening

Tickande bomben i Heimstaden AB