Two Blokes

Tariffs, Inflation, And Returns: How Investments Respond To Supply Shocks

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    Posted by Two Blokes May 28 - Filed in General - #TwoBlokesTrading  - 14 views
    This post offers a framework for thinking about the effect of tariffs on major asset class returns by estimating asset classes' response to supply shocks. This blog uses a Phillips curve approach to separate inflation's signal or trend, driven by inflation expectations and the output gap, from noise or the fleeting factors that come and go.