- Given the broad strength of the US economy and elevated price pressures, the low yields once again defy economists' expectations. There were around $13.7 trillion of negative-yielding bonds in the world at the end of last week, the most in four months.
- Most emerging market currencies weakened against the dollar this year, whether monetary policy was tightened or not, save for the Russian rouble, Taiwanese dollar, and the Chinese yuan.
- The initial economic impact of Omicron has thus far been limited, as many employees in the US and Europe have not returned to the office full time. On the other hand, the groping for a new normal in work patterns will take longer to sort out.
- Theuneven re-opening, supply chain disruptions, strong demand, and shiftingconsumption patterns have been greater and lasted longer than initiallyprojected by investors and policymakers. However, this does not necessarilymean the US is returning to the inflation of the late 1970s.
For further details see:
The Chagrin Of Beijing And The Problem Of Time