Where does the ‘excess US stimulus’ show up – in higher inflation or a bigger current account deficit
Economic Policies, The Global Economy | 3rd June 2021
A note co-authored with John Llewellyn of Llewellyn Consulting which asks where the ‘excess demand’ resulting from the extraordinary amount of policy stimulus now being applied to the US economy will show up – in inflation (which is where the financial markets and most pundits appear to be looking) or in the US balance of payments (which is where we think history tells us we should be looking).
2021-06-03 US inflation and the current account