Here’s why inflation no longer drives the bond-market

2019-11-13

Don’t expect the inflation bugaboo to scare away the bond-market bulls. Once the highlight of the economic calendar, U.S. inflation data releases have now been shunted to the sidelines by bond traders who say they are paying more attention to the outlook for the labor market and the broader economy.Read More →

No end in sight for ECB’s inflation problem

2019-10-01

Unemployment in the eurozone declined to 7.4% in September, its lowest level since August, 2008, the EU’s statistics institute Eurostat said Monday. But this good news about the European economy helps underline the predicament the European Central Bank has long struggled with: the persistent low level of inflation. The ECBRead More →

Why the Fed should ditch its 2% inflation target

2019-06-17

The Federal Reserve is charged by Congress to accomplish full employment and stable prices. For economists, these objectives pose a tradeoff, and the Fed targets 2% inflation as a compromise. All this is premised on economic theories rendered obsolete by the globalization of many goods and services markets, capital mobility, and resulting wageRead More →