NZ inflation expectations end of 2009
Yesterday gave us the Labour cost index. This index provides my favourite (albeit partial) measure of inflation expectations, the adjusted private sector labour cost index. Anyway, what is it doing?
In conjunction with the negative annual growth in the money stock during the close of 2009 (note our caution) it looks like inflation isn’t a clear and immediate concern …
I hate to say this but I’m not really surprised. Everyone is still afraid of the financial crisis so they accept lower wages, which leads to less money in the cycle, ab so on and so on. It will take sometime until inflation rises its ugly head again.
Nice post, and good topic.
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Thx.
well financial crisis hits most of us.
need around 3 years or more for getting normal again