We have made a note on inflation five years ago. We think it is time to update the data and charts and check how they look like. For the recent inflation debate, we use the data reported by Bureau of Labor Statistics and share our impressions. First, on the...
Why do we, the investment professionals, ask what causes inflation and need to get equipped with an accurate idea of the long-term trend of inflation? As the decline in the cost of capital has had a strong influence on the discount rate for future excess return, the...
Krugman provided his proposal on the problem of Japan economy back in 1998, which centered on the liquidity trap and inflation expectation. It recommended using monetary policy aggressively to boost inflation expectation to get it out of the liquidity trap (where the...
