Kieger Multi Asset Chart of the Month
Inflation is always and everywhere a monetary phenomenon…
Although we at Kieger are by no means committed monetarists, this chart lends more credence to the idea that inflation will be moving lower in the next months. The world, and our understanding of economics, has evolved since Milton Friedman made his famous declaration linking inflation and the monetary base in 1963. However, there are reasons to believe that some of the confounding variables behind M2 will push inflation lower. What the Fed’s reaction will be to this deceleration in inflation will be a key question for markets.
