
MacroVoices #290 Juliette Declercq: Are Cyclical Indices Positioned To Outperform?
Macro Voices
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Is Second Run Inflation Really Reflationary?
Second run inflation is actually reflationary, whilst the first round of inflation is contractionary. Secondary effects are much harder to control. Most central banks have tended to lean against true reflation for decades. It also explains why a real salaries have been diverging fom productivity and the reason why purchasing power has been curbed so drastically over the past few decades.
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