The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Tuesday, November 9, 2010

Inflation expectations

This is a very interesting chart from the RBA's Statement on Monetary Policy. Observe the long-term upward drift in inflation expectations amongst (a) investors and (b) consumers prior to the GFC. That's what happens when you consistently miss your inflation target.

at 10:41 AM