Swiss National Bank President Thomas Jordan spoke at the Federal Reserve’s annual Jackson Hole symposium on Saturday. “Structural factors such as the transition to a greener economy, rising sovereign debt worldwide, the demographic transition and ultimately also the fact that globalization appears to have peaked — at least temporarily — could lead to persistently higher inflationary pressure in the coming years” “There are signs that inflation is increasingly spreading to goods and services that are not directly affected by the pandemic or the war in Ukraine” higher prices are being passed on more quickly inflation expectations “have also been moving upwards slightly” a decline in global economic integration could increase companies’ price-setting power, meaning
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Swiss National Bank President Thomas Jordan spoke at the Federal Reserve’s annual Jackson Hole symposium on Saturday.
- “Structural factors such as the transition to a greener economy, rising sovereign debt worldwide, the demographic transition and ultimately also the fact that globalization appears to have peaked — at least temporarily — could lead to persistently higher inflationary pressure in the coming years”
- “There are signs that inflation is increasingly spreading to goods and services that are not directly affected by the pandemic or the war in Ukraine”
- higher prices are being passed on more quickly
- inflation expectations “have also been moving upwards slightly”
- a decline in global economic integration could increase companies’ price-setting power, meaning that they would be able to push through price increases more easily
Info come via a gated Bloomberg article.
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Jordan’s comments are not aimed at only a Swiss context – these developments he cites are applicable across developed markets. Higehr rates for longer is getting cemented in.
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