Although a big fiscal package is in the pipeline (admittedly the Greatest Deliberative Body in the World is playing its usual log-rolling games), smashed supply, and rampant "money printing" (ha!), breakeven inflation in the United States is cratering (figure above). This is exactly what should have happened, although the big question is whether current pricing is an overshoot of fundamentals. (I leave that market call to the reader.) I outline why this puzzling inflation perspective is the correct call -- top down inflation analysis will not work, we need to go bottom up....Bond Economics
Money Printer Go Brrr ... And No Inflation?
Brian Romanchuk
No comments:
Post a Comment