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From the Jackson Hole sidelines: Amazing that all the three economists polled on the timing of the rate rise talk only of inflation risk if rates remain too low for too long and then dismiss it. No mention of the financial cycle and the risks of an asset price boom-bust, financial system instability and economic instability consequently. What education will open people’s minds and brains? Is there such an education at all? [Link]

Rising and falling stars of Global Manufacturing – US and UK are mentioned. Evidence is missing, however, in my view. Investment in non-residential equipment and employment gains in manufacturing are conspicuously missing. [Link]. This supports my scepticism.

Former Chief Economist of the Reserve Bank of Australia (RBA) feels that rates (monetary policy) are being asked to do too much work. I agree. Central banks in the West seem only too willing to oblige, instead of pushing back. He also warns of ‘groupthink’ in RBA. [Link]

This op.ed. in Financial Times agrees with the former Chief Economist of RBA. Whether or not it does, I agree with it!

“In just two years – 2011 and 2012 – China produced more cement than the US did in the entire 20th century” – from the FT report on the China property bubble. More here and here.

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