Feeling Disinflated

In a world where globalization and digitalization are converging in ways as never before seen, considering basically non-existent worldwide commodity price appreciation can result in a disinflationary feeling that won’t go away by taking a couple of aspirin and sleeping it off.  In fact, there is an “inflated optimism” that HSBC Strategists Daniel Fenn and Mark McDonald say inflation targets should get a reality check. The question becomes: is this a structural issue or does it point to supply and demand dynamics? In the end, this could lead to a change in key monetary policy assumptions.

[dalio]

Worldwide inflation signals have mean reverted

As Fed Chair Janet Yellen is beginning to take...