With the fight against inflation taking center stage, the talk now is of the risks involved in slowing an economy hard. It is a test not just of particular policies and policy-makers but of a policy regime. Ahead of the surge of prices in the second half of 2021, were central bankers focused on the right things? Did they underestimate the risks? Do they actually understand the economy?
Your opening question about central bankers 'Do they actually understand the economy? ' remains unadressed - hypergranular model simulations based on misrepresented economy might be not just unhelpfull but even dangerous. Where is a model of 'greedflation'?
yra harris--and yet again as the FED raises rates the heavily indebted emerging markets are forced to pay higher rates and this is compounded by the growing strength of the dollar which is the most heavily borrowed currency in global finance thanks to the ill-conceived policies of the FED.The longer the ECB and the BOJ keep downward pressure on their currencies in an antiquated effort to sustain domestic demand through trade the heavier the burden on so much of the world's economies.KING DOLLAR is a philosophical construct of mythologist Larry Kudlow and not the present predicament of the global financial system
Your opening question about central bankers 'Do they actually understand the economy? ' remains unadressed - hypergranular model simulations based on misrepresented economy might be not just unhelpfull but even dangerous. Where is a model of 'greedflation'?
I would expect inflation to decompose into 3 sources: energy, China, domestic monopolies.
yra harris--and yet again as the FED raises rates the heavily indebted emerging markets are forced to pay higher rates and this is compounded by the growing strength of the dollar which is the most heavily borrowed currency in global finance thanks to the ill-conceived policies of the FED.The longer the ECB and the BOJ keep downward pressure on their currencies in an antiquated effort to sustain domestic demand through trade the heavier the burden on so much of the world's economies.KING DOLLAR is a philosophical construct of mythologist Larry Kudlow and not the present predicament of the global financial system