In this issue:
- Mostly meandering markets
- US assets take a back seat to global asset allocation this week
Daily Archives: May 21, 2021
Managing Inflation Expectations: 21 May 2021
Long ago and far away, economists thought they understood the relationship between unemployment and inflation. The prevailing wisdom back in the day: higher (lower) inflation aligned with lower (higher) unemployment. Believing in this relationship appeared to be reasonable for the 1960s. But then something happened to shatter this conviction: the 1970s.
Macro Briefing: 21 May 2021
* Cease-fire between Israel and Hamas puts 11-day war on hold
* US proposes minimum 15% global tax on multinational firms
* US Treasury wants crypto transfers over $10k reported to IRS
* Eurozone Composite PMI (a GDP proxy) rises to 39-month high in May
* UK private-sector growth in May jumps to fastest pace in two decades-plus
* Japan slips back into economic contraction in May via PMI survey data
* US Leading Economic Index rose in April, surpassing pre-pandemic high
* Philly Fed Mfg Index: growth cooled in May but remains strong
* US jobless claims continue falling, dropping to new pandemic low:
