BoC/BoE/RBA Comments

Even with headline ‘inflation’ above comfort levels and recognizing the need to ‘manage inflation expectations’ under ‘expectations theory’ they all religiously believe, they seem to be sufficiently concerned about aggregate demand to make these kinds of dovish comments. Conclusion: they’re understating the general weakness they’re sensing. From Karim, my partner at Valance: Karim writes: Some […]

Re: RBA – 86% OIS odds of a hike in March

(an interoffice email) Looks familiar – the CB forecasting inflation falling from higher and higher levels as it move up rather than down as originally forecast. ———- Forwarded message ———- From: Milo Date: 2008/2/14 Subject: This Picture says it all, I recon – 86% OIS odds of a hike in March To: Warren Mosler, Karim […]