Monday, December 28, 2015

Technology breakthrough nearing that will change the world

In spite of innovations, we still have growth falling. However, I will be slightly optimistic for the following reason - we are on the cusp of a major technology revolution that will be changing the world: leading to increase in productivity. 

We have energy, technology, biotech with all major innovation in bio medical research; information technology: social media, Internet of things, as well as manufacturing technology, financial technology and finally defence technology.

Monday, December 21, 2015

High inflation has not been seen for a while

Monetary policies are still unconventional, with interest rates hovering around zero. While many have assumed that high inflation would be the outcome, in reality the reverse has happened.

Inflation has become lower and lower in the US and the UK. Next year in Eurozone and Japan, inflation is going to stay low, inflation in the US may go higher at the headline level. Growth is below potential. Real interest rates are going to be low.