Jim Grant has difficulty “making heads or tails” of Mario Draghi, his choice of arcane inflation measures or his panic that inflation is too low.
In the recent Grant's Observer, Draghi’s selection of the “five-year, five year euro inflation swap rate” as a “clear” measure of future inflation is confusing. “Curious minds will ask how any mortal being, swaps trader or not, can accurately divine distant events,” Grant said, questioning the basis upon which Draghi is making decisions.
Jim Grant notes problems with Draghi's comments on inflation
Draghi was concerned that inflation has been on a downward path from near 2.5 percent in the summer of 2012 to 0.4 percent more recently, as deflationary whispers grip investors across in Euroland. Grant...
