Inflation Risk Amid a Scramble for Yield

Published on
October 29th, 2019
51 minutes

Inflation Risk Amid a Scramble for Yield

The Essential Conversation ·
Featuring Kevin Muir

Published on: October 29th, 2019 • Duration: 51 minutes

Is fiscal stimulus on the horizon? Kevin Muir, market strategist at East West Investment Management and author of "The Macro Tourist," argues that the declining efficacy of monetary policy will force governments to run-up even larger budget deficits. In the face of central bank impotence, he predicts that politicians across the political spectrum will turn to Modern Monetary Theory, or MMT, to avert a disaster. Muir suggests that this flood of spending poses serious inflation risks and that a monetary "day-of-reckoning" is forthcoming, but not imminent. He argues that this trend makes negative yielding sovereign debt highly imprudent — particularly in Europe, where he sees a "sovereign debt bubble." Filmed on October 4th, 2019 in Toronto.