SmarterMarkets™ What are SmarterMarkets? Episode 1 | Jeff Currie, Goldman Sachs Global Head of Commodities Research
Jan 15, 2022
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Low-Income Groups Drive Commodity Inflation
- Low-income groups drive physical inflation and commodity bull markets through volumetric demand growth.
- High-income groups cannot cause physical inflation due to insufficient volume of consumption.
Stimulus Focus Shapes Inflation
- Stimulating lower income groups sustains inflationary pressure by expanding volumetric consumption.
- Policies like green capitalism and onshoring support lower income employment, reinforcing commodity price growth.
Old Economy Shortages Fuel Inflation
- The old economy shortage of workers and capital causes inflation in goods due to underinvestment.
- Rebound demand with insufficient resources creates a self-reinforcing inflationary cycle.