Showing posts tagged with: Demographics
SynopsisCurrent consensus expects continued disinflation in the global economy. US and global labour market dynamics do, however, point to a threat of the return of sustained wage inflation over the next 5 to 10 years. A heightened risk to medium-term inflation outlook is caused by:
- Fundamental dynamics such as lack of infrastructure investment in major developed economies.
- The end of ‘Moore’s’ law and geopolitical-induced disruption to global energy supplies.Memories of the 2008 financial crisis create the risk that policymakers will be slow to react and respond to a return to elevated global inflation.