Reflation Trade Is a Multi-Year Development, State Street’s Lacaille

The video discusses the long-term economic developments, focusing on the US stimulus and the global shift towards decarbonization, which is driving significant investments from both public and private sectors. It also explores the emergence of inflation pockets and economic hotspots, suggesting that these are isolated rather than indicative of broad-based inflation due to surplus capacity.

What does the speaker mean by 'hot spots' and 'cold spots' in the context of the economy?

Why does the speaker believe there is not a case for broad-based inflation?