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."

Wednesday, September 14, 2011

Think the Bank of England has dropped its inflation-target?

A well-trod subject here. Well, you be the judge: enclosed below is the latest "core" UK inflation (ex energy, food, alcohol and tobacco) estimates since 2000. The Bank of England's target is 2% pa over the forward 2 year forecast horizon...The second chart illustrates headline inflation, and tells a somewhat similar story. The key difference is that core inflation did not surge prior to the GFC in the same way the headline did. But core inflation has surged post-GFC.