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No celebrations on strong global growth as inflation drag continues

Come September, the reality may hit that prospects for sweeping US tax cuts have stalled

Reuters  |  London 

Stock markets have spent the year rising on bets of a resurgence in inflation, while central bankers trying to manage the global economy have spent the same time repeatedly reassuring everyone it's just around the corner. Policymakers gathering at an annual monetary retreat in Jackson Hole, Wyoming in the coming week no doubt will be collectively pondering why the textbook rule that says low unemployment leads to labour shortages, then higher wages, and then in turn higher inflation, isn't working. Yet the global economy is growing strongly. Apart from the risk of a stock ...

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First Published: Fri, August 18 2017. 18:31 IST