DXY/ GBP$/ $JPY/ EUR$ - HAS THE USD RALLY KILLED INFLATION?
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Why has the relationship between inflation and unemployment reversed in recent times? (Phillips curve) -
1. 1980s vs 2017 - Expansion in govt and consumer credit, economic boom, demographics 2. unemployment manipulation/ part time, participation rate 4pts lower 63 vs 67. 3. Servicing debt rather than consuming more goods/ services - wage v debt differential 4. Consumer/ producer economy, importing and financialisation. 5. No trickle down of QE 6. USD rallying killing inflation (vs UK/ GBP) WATCH THE EXPLATION/ ANALYSIS BELOW -