The ranks of the newly unemployed tumbled last week, as expected. The previous update on weekly filings for jobless benefits reported a dramatic surge, but many analysts–including yours truly–argued that the spike was weather related and so it probably wasn’t a sign that the business cycle was slipping over the edge. Today’s news provides some statistical support for that relatively optimistic perspective.
Daily Archives: November 21, 2012
A Perverse Relationship: Equity Prices & Inflation Expectations
The stock market and the market’s implied inflation forecast are still a perverse couple. That’s no surprise, given the anxiety over the fiscal cliff, the economic outlook, the Middle East, and all the rest. The new abnormal, in short, is still with us and probably will be for the foreseeable future. That’s no surprise, even if this reality shocks some observers who continue to consider inflation from a pre-2008 perspective.