The picture of free markets and decentralized decision making is somewhat misleading. Companies are not democracies but highly organized and often hierarchical structures. Companies interact with one another and with their customers in a free market. Today’s capitalist economies look more like collections or coalitions of centralized control communicating with one another in a free

You will hear a lot of talk about inflation in the financial media. Here are some thoughts about it. I don’t think inflation will rise or if it does that it will be protracted. But I am keeping my interest rate sensitivity low and keeping a keen eye on inflation data. Asset markets have either

Why is inflation so low? Why is economic growth so slow despite the efforts of central banks and governments? One possible view of the world: The identity MV = PQ is, precisely that, an identity. So as central banks inflate the money supply, why does growth not accelerate, and prices not rise? It must be

A detailed discussion is too long to fit in the margin, so without justification or validation, here are some forecasts.  During the COVID lockdowns, schools have been shut and are struggling to reopen. This cohort of students face disruptions to their education which could lead to a future shortage of skilled labour. Labour costs may

The basic and easy stuff USD will be strong for the foreseeable future. USD is a haven currency and as the economic crisis persists or matures, preference for USD will remain. USD remains the settlement currency of choice for the vast majority of international trade. The US economy is the strongest and is expected to