Quarterly Update: Q1 2023
As the saying goes: there are decades where little happens, and there are weeks where decades happen. The weeks of Q1 2023 fell squarely into the latter category. Our letter reflects on the consequences of the rapid monetary tightening, the recent collapse of banks and declining retail spending. The letter also discusses the launch of OpenAI’s latest AI model, GPT-4.
The “cosmic” forces leading the US to MMT
The question of inflation brings us to a larger ongoing debate on the merits, or otherwise, of an increasingly popular idea called Modern Monetary Theory (MMT). The core idea of MMT is that governments who issue debts in their own currency can never default. After all, they can always print money to repay their debts, if needed.
Inflation is here
As we process the information being reported by companies in their first quarter earnings announcements, one theme that pops up across the board is that of inflation. Read on to know our analysis.
Are America’s stimulus checks inflationary?
With the US government handing out stimulus payments, concerns over the risk of inflation are rising in investors’ minds. Read on to know why we believe that core inflation will not pose a threat.
