Larry MacDonald submits: Let’s explore an interesting development: the different inflation experiences of emerging countries and developed countries. In case you haven’t noticed, inflation in emerging countries is higher, demand-pull in nature, and advanced to the stage of a wage-price spiral; in developed countries, it is lower, cost-push in nature, and not advanced to a wage-price spiral. Does this have any significance? One ramification could possibly be the unwinding of the secular growth stories of the emerging countries and a return to economic supremacy of the developed countries. It could also mean the stock markets of the developed countries will be more rewarding places over the next decade or so compared to the stock markets of emerging countries. Complete Story » ...
Anytime
Larry MacDonald submits: Let’s explore an interesting development: the different inflation experiences of emerging countries and developed countries. In case you haven’t noticed, inflation in emerging countries is higher, demand-pull in nature, and advanced to the stage of a wage-price spiral; in developed countries, it is lower, cost-push in nature, and not advanced to a wage-price spiral. Does this have any significance? One ramification could possibly be the unwinding of the secular growth stories of the emerging countries and a return to economic supremacy of the developed countries. It could also mean the stock markets of the developed countries will be more rewarding places over the next decade or so compared to the stock markets of emerging countries. Complete Story » ...