We summarise the main takeaways from our attendance at the IMF annual meetings in mid-October, reflecting on these in light of market moves since then.
While the global economy is doing well in terms of growth, inflation is still clearly lacking, which will keep central banks from tightening near term. This provides a window of opportunity for politicians to implement structural reforms.
For developed markets, identifying the correct measure of slack was mentioned as a key guide to understanding why inflation will be picking up further out.
For emerging markets, the messages were more mixed, with most countries pursuing prudent policies, but the underlying growth potential differing widely.
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