DXY/ GBP$/ $JPY/ EUR$ - HAS THE USD RALLY KILLED INFLATION?
Why has the relationship between inflation and unemployment reversed in recent times? (Phillips curve) -
1. 1980s vs 2017 - Expansion in govt and consumer credit, economic boom, demographics
2. unemployment manipulation/ part time, participation rate 4pts lower 63 vs 67.
3. Servicing debt rather than consuming more goods/ services - wage v debt differential
4. Consumer/ producer economy, importing and financialisation.
5. No trickle down of QE
6. USD rallying killing inflation (vs UK/ GBP)
WATCH THE EXPLATION/ ANALYSIS BELOW -
1. 1980s vs 2017 - Expansion in govt and consumer credit, economic boom, demographics
2. unemployment manipulation/ part time, participation rate 4pts lower 63 vs 67.
3. Servicing debt rather than consuming more goods/ services - wage v debt differential
4. Consumer/ producer economy, importing and financialisation.
5. No trickle down of QE
6. USD rallying killing inflation (vs UK/ GBP)
WATCH THE EXPLATION/ ANALYSIS BELOW -
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.