Economist Schomer Sees Normal Inflation Environment

The video discusses the current economic environment, focusing on whether it is inflationary or disinflationary. It highlights the closing of output gaps globally, leading to balanced demand and supply, and increased business investment. The role of central banks in influencing asset valuations through quantitative easing is examined, noting the compression of risk premiums across asset classes. The gradual normalization of monetary policy by central banks is expected, with minimal market disruption anticipated.

What factors contribute to the current inflationary environment discussed in the text?

How has the closing of output gaps around the world affected business investment?

What role do central banks play in the current economic situation according to the text?

Discuss the impact of quantitative easing on asset valuations as mentioned in the text.

What are the expectations regarding the normalization of monetary policy in the near future?