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On today’s Intelligent Money Minute, we’ll interview Ed Peters on whether what are the inflationary indicators? During this episode, Ed breaks down the different types of inflationary indicators and how they each impact the economy. As Ed mentioned money velocity, is the amount of currency that is spent compared to how much money is out there. While the money supply has grown, GDP has increased faster, causing the money velocity to collapse and is currently flat.
While there is more money going into the economy, Americans are not spending, but rather saving their money. This can indicate that the current inflationary environment is caused by something other than money supply. Perhaps supply shocks due to supply chain issues. Perhaps demand shocks which are the pent-up demand for goods and services from Americans.
On the next episode with Ed Peters, we’ll talk about the difficulty the Fed has found itself in, and what are some of the potential outcomes as they navigate this difficult environment. Be sure to subscribe to our podcasts so you can stay informed.
Ed Peters Bio
Ed Peters is First Quadrant’s Managing Partner. In this role, Ed establishes the firm’s strategic direction, develops firm-wide initiatives, and chairs the Executive Leadership Team and the Management Operating Committee. Ed also contributes to First Quadrant’s research efforts, with a particular emphasis on market states, and manages the firm’s long-only multi-asset strategy. Prior to joining First Quadrant in 2008, Ed worked at PanAgora Asset Management, at various times serving as equity portfolio manager, Director of Tactical Asset Allocation, CIO of Macro Investments, and CIO. Other past work experience includes Interactive Data Corporation and Mutual Benefit Life. Ed holds an MBA from Rutgers University. He has published articles in multiple investment journals, as well as three books.