macroVS Episode 9: Global Macro Conundrums
Inflation. The Dollar. The Bundesbank's Balance Sheet. Japan's Goldilocks Economy. Welcome, folks, to the 1970s.
Welcome to macroVS episode 9, a monetary policy podcast where we let data derived from central bank language show us all the many ways in which advanced economies are diverging and decoupling from each other.
This past week, every single G7/reserve currency central bank (except Canada) fielded at least one senior official to provide verbal pictures of diverging economies and monetary policy priorities. Consequently, we have SEVEN QUOTES OF THE WEEK.
The most dramatic of the significant quotes involves the Bundesbank.
Perhaps it is a coincidence, but this week there was really only one document that merits a deep dive.
We respectfully suggest that if you have time to read only one document, it must be our sole recommended reading which as far as we can tell may have received ZERO media coverage. If you strategize about FX markets and if terms like the Plaza Accord and the Bretton Woods system mean something to you, then scroll down to the last section of this post for some really interesting, newly released central bank research.
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