Last year it was the OECD; now it’s the Bank for International Settlements. Once again, Very Serious men at an international organisation seem determined to find reasons to tighten monetary policy in the face of a continuing deep slump.The BIS cites rising commodity prices and rising implied inflation forecasts based on interest rate spreads. The thing about reports like this, however, is that they have to be written and approved by committees, which means that they’re based on lagging data — and sure enough, both interest spreads and commodity price inflation are telling quite different stories these days.
Read the rest of this article at The New York Times.
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