Source: WSJ
Global Economy Stumped By Low-Price Problem
December 16, 2015 6:00am by Barry Ritholtz
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/
What's been said:
Discussions found on the web:Posted Under
Previous Post
GOP Seeks to Consolidate Gains, Build Party LoyaltyNext Post
To Raise, Or Not To Raise…
Yes they keep predicting inflation levels way above what reality deliver to them later. Could it be that their models are wrong? – – – NEVER!!! it is reality that is wrong!
I like it: the Hitch-hikers guide to the Galaxy theory of economics: “Economics is definitive. Reality is frequently inaccurate.” Likely to be the core theory behind the launch of a truly breath-taking new school of theoretical economics.
– And that low inflation is a “Moderate Wage increase” problem. Since say 1980 wages have gone up every year below inflation. And that undercuts demand resulting in “low inflation” to outright “deflation”.
– Add to the mix that corporations still seek to increase productivity (= produce the same amount of goods with fewer workers) and it’s quite clear that inflation won’t pick up any time soon.