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."

Monday, May 9, 2011

Once we had the "Great Moderation"--prepare for the "Great Inflation"

Not sure whether anyone has coined this term before--the Great Inflation--for the period that lies in wait. But I will sure as hell claim it (trade mark pending with IP Australia). Anyhow, the WSJ has jumped on the bandwagon and published this essay on why China is going to start exporting inflation to the rest of the world, which has been a favourite topic of mine of late. Especially worrying for capacity-constrained Australia. Jeffrey Sachs comments:

""This idea that we have moved from an era of easy deflationary environment to one of inflation is correct," Jeffrey Sachs, economist and director of the Earth Institute at Columbia University."