Inflation obscures the West’s weak competitiveness

Thursday, 23 March 2017

The West is losing ground to emerging markets with China at the forefront of this. In Europe, there are very few signs of productivity-enhancing reforms. Financial markets were anticipating meaningful policies and measures by the Trump administration. However, markets are not so sure anymore. Will this change our prediction about the EUR/USD's trajectory towards 0.95 and will the West resort to an inflationary policy?  

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