Have negative involvement rates boosted inflation? Here is a prissy graph (source macro-man blog, HT FT alphaville)
Not really. Explanations? Choose the chicken or the egg:
1) But for negative rates, inflation would accept been fifty-fifty lower
2) We're living inwards a Fisher final result world. Lower rates lower inflation. (Which is arguably a good, if unintended, thing)
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| Source: Macro-man blog |
1) But for negative rates, inflation would accept been fifty-fifty lower
2) We're living inwards a Fisher final result world. Lower rates lower inflation. (Which is arguably a good, if unintended, thing)
