Inflation and deflation are always asset-category specific, but here is a contrary argument to my deflation position. I like reading people whose views are the opposite of mine... not convincing, but interesting:
Understated price inflation fundamentally distorts everything that is macroeconomic, from monetary policy to economic commentary. It misleads central bankers into thinking they are missing their inflation targets when they are in fact exceeding them by a dangerously wide margin. It misleads analysts into thinking we are on the brink of a deflationary slump with prices maybe about to collapse. And most worryingly of all, bond markets have become more mispriced than even hardened bears realise, something that’s very likely to be corrected through a financial shock.Feel free to forward this by email to three of your friends.
0 comments:
Post a Comment