March 12, 2018

The myth of “synchronized global growth”

For some months now, that has been the narrative. The Fed has embraced the idea, with new chair Powell introducing “avoidance of overheating” in his first speech (testimony), while resident dove Brainard, as her “wind analogies”, which swirled from “head” to “tail”, has changed from dove to hawk. As this parsing of Brainard´s speech put it: Brainard: Cutting to the chase, I am now a hawk At the very start of her speech, Brainard says: Many of the forces that acted as headwinds to U.S. growth and weighed on policy in previous years are generating tailwinds currently. Today many economies… Read More