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Do Financial Conditions Matter When It Comes to Inflation?
Do financial conditions actually matter when it comes to bringing down inflation? It's a good question, because if you think about the same applies to the yield curves. When you do have an easing of financial condition index, on balance, you would argue that it is easier to transact and support more economic activity. But this idea that as soon as you go into inversion yield curve for a period of nine months, you always have recession, I think this is very much industrial age idea.