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Why Nomura Expects ‘Turbo-Charged Global Inflation’

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. […]

1 Comment on Why Nomura Expects ‘Turbo-Charged Global Inflation’

  1. Someone should tell Charlie Bilello that the money wasn’t really ‘borrowed’; it was created out of nothing, added to the debt, then distributed/disbursed via federal spending — he ought to know that.

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