I do think there’s a path to bring down inflation while maintaining what I think all of us would regard is a strong labor market, and the evidence that I’m seeing suggests we are on that path…Are there risks?
2-4% inflation target is more common for EM countries. We probably have a new long term GDP growth trend in DM countries below 2% if we factor in changes in demographics and productivity. So I guess the 2-4% target would be more a short term thing?
2-4% inflation target is more common for EM countries. We probably have a new long term GDP growth trend in DM countries below 2% if we factor in changes in demographics and productivity. So I guess the 2-4% target would be more a short term thing?
Over the long-term, governments are too indebted to cope with positive real yields. They need negative real yields to bring debt levels down.
Regarding demographics, I don't think that they play a significant role when it comes to interest rates, as many suggest.
I wrote about it here: https://fwintersberger.substack.com/p/a-little-piece-of-heaven
Cool. Thanks Fabian