Periodic inflation scare
We’re going through a periodic inflation scare. Basically, with central banks tightening (Europe) or standing firm (U.S.), and long-term interest rates racheting slightly higher (the 10 year Treasury breaking the 5% barrier) it’s hard to see an upward spiral in the overall price level.
Plus, I’m skeptical about the popular notion on Wall Street that wage pressures are mounting rapidly. The data isn’t very convincing. And conversations about the job market still seem dominated by how hard it is to get another offer rather than the joys of jumping ship.
Strong global economic growth and tight central bankers doesn’t translate into inflation. Hopefully, it means strong real growth, lots of real hiring, and stable real prices.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
Cheers to trustworthy journalism!
Give just $7/month to get your own KaiPA glass.