By Tyler Durden | 10 March 2021
ZERO HEDGE — Economist Lewis Alexander, and his team at Nomura, wastes no time in his latest monthly global economic outlook report – titled aptly enough “Turbo-Charged Global Reflation” to get to the point: “in addition to vaccines and policy stimulus, an economic recovery synchronized across regions will add further impetus to global reflation.”
What follows is a comprehensive and mercifully succinct summary of Alexander’s views covering every global region, and justifying why Nomura believes a tidal wave of inflation is about to be unleashed:
- Democratic control in Washington means more fiscal stimulus, but partisanship and narrow majorities will likely constrain policy.
- The pandemic will weigh on short-term activity, but the vaccine outlook is positive for the medium term.
- We expect constant Fed asset purchases through 2021 before a gradual taper in 2022, but risks skew towards earlier action.
- The Fed will likely stay at the ELB at least through Q2 2023 with inflation remaining the key determinant to liftoff. […]