Collins, Quinsee, Gapen on U.S. Versus EU Inflation

The transcript discusses global economic trends, highlighting uniform inflation issues and the ability of companies to shift resources globally. It compares the economic cycles of Europe and the US, noting Europe's lag. The US is experiencing structural disinflation due to factors like the platform economy and price wars. The divergence between central banks, particularly the ECB and the Fed, is explored, with a focus on Canada's strong economic performance. The Bank of Canada's communication strategy is praised. Finally, the appropriateness of current monetary policies is debated, considering factors like demographic headwinds and financial stability.

What is a key reason companies are unable to raise prices despite rising wages?

• Increased competition from local markets

• Uniform inflation issues globally

• High unemployment rates

• Lack of consumer demand

How does the economic cycle in Europe compare to that of the US?

• Europe is ahead by a year

• Europe is on the same cycle as the US

• Europe is lagging by 2 to 3 years

• Europe is unaffected by global trends

What structural factor is contributing to disinflation in the US?

• Decreasing unemployment

• Rising interest rates

• The platform economy

• Increased government spending

Which central bank has started raising rates due to strong economic performance?

• Federal Reserve

• European Central Bank

• Bank of Canada

• Bank of England

What is the unwritten third mandate of the Federal Reserve?

• Economic growth

• Financial stability

• Employment maximization

• Inflation control