Economic and Strategy Viewpoint - November 2017

improvement in the world economy has been given the official seal of approval by the IMF which has just revised up its projections for global growth. Whilst such forecasts can be seen as lagging indicators, there are signs that global growth will be sustained as the capital spending cycle kicks in. 


despite the strengthening of activity, inflation remains quiescent creating consternation amongst policymakers whose models would have predicted a pick-up in wage and price pressure. We look at some of the structural differences behind this and conclude it is too early to ditch the Phillips curve.