Contact Us

News

 

Global growth contributing to future inflation


The ongoing economic resurrection in Japan and across Europe, combined with only a marginal drop in the latest import price index, points toward upward inflationary pressures not seen in the U.S. economy since 1994, says Anirvan Banerji, co-director of research at the Economic Cycle Research Institute. He notes that for the first time since 1994 - the bond market's worst in recent memory - the economies of the G-7 nations are growing in sync. While that may benefit the global outlook as a whole, he says worldwide growth removes some of the factors that have allowed the U.S. economy to expand without inflation.