Market & economic

Market & economic

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A formidable adversary in the fight for 2% inflation: Moore’s Law

Categories: Market & economic

The global economy is at or near full employment, yet a decade after the onset of the Global Financial Crisis, central banks still struggle to achieve their 2% inflation targets despite years of extraordinary stimulus. Joe Davis examines the growing deflationary effects of Moore’s Law and explains why technology is an important—and often overlooked—factor in explaining why inflation has tended to fall short of expected targets.

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