Since 2009, we have been forecasting inflation would remain low permanently, despite strong growth.
Yet, still, in 2019, the AFR is running articles asking why low inflation persists? How perplexing
As a true over-the-horizon "look out the window" economist, I have been speaking since 2009 about how, "from the corner store to the global corporation, you cannot raise prices without losing market share".
The global economy is a fiercely competitive place now. Extreme competitive price pressures are here to stay.
Low inflation, is in fact, a positive and natural outcome of a strong, new, global economy.
Central Banks, from the US Federal Reserve to the RBA, still do not understand this. The natural result is permanently lower central bank interest rate settings. Which support continued low borrowing costs and strong growth into the distant future.
This is part of the reason I forecast a New Grand Bull Market for US stocks to last 5-15 years, live on the Switzer Show, 10 March, 2009. Just two days after the absolute low.
This is the kind of understanding and real time economic truth we search for on a constant and daily basis.