The Great Moderation has given way to the Great Stagflation, which will be characterized by instability and a confluence of slow-motion negative supply shocks. US and global equities are already back in a bear market, and the scale of the crisis that awaits has not even been fully priced in yet.
sees the latest market turmoil as a long-anticipated reckoning for bad policies and negative supply shocks.
In response to British Prime Minister Liz Truss’s “mini-budget,” financial markets have sent the pound spinning to its lowest level ever, with no bottom in sight. While talk of an outright UK default is overblown, it is not unreasonable to anticipate a painful reckoning just short of that outcome.
considers the implications of the new government’s poorly received economic-policy package.