Noah Solomon: Several things will make it challenging for inflation to be as well-behaved as it has been in decades past
by Noah Solomon
Financial Post
The past few decades have been largely defined by low inflation, declining rates and a highly favourable investment environment, but conditions will be markedly different going forward and this will have significant repercussions for portfolios.
This disinflationary, ultra-low-rate backdrop in large part resulted from China’s rapid industrialization and growth. Specifically, the integration of hundreds of millions of participants into the global pool of labour represents a colossally positive supply side shock that served to keep inflation at previously unthinkably well-tamed levels in the face of record low rates.