In countries whose currencies have risen against the U.S. dollar, there’s “flow-through deflation” as imports get cheaper.
In three of the world’s richest countries, average real wages are lower today than they were in 2010.
Encouraging home ownership may deter the labour mobility vital for a dynamic economy.
The Bank of Canada and other central banks around the world have artificially lowered interest rates, making investment and risk-taking much cheaper.
Even the prospect of small deficits relative to GDP may generate substantial investor uncertainty in an environment where interest rates are on the way up.