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Does quantitative easing boost bank lending to the real economy or cause other bank asset reallocation? The case of the UK (BoE, 56 page read) ‘we find no evidence that suggests that QE directly boosted bank lending to the real economy’ Gulp. [Bearish UK assets]
Inflation at Risk in Advanced and Emerging Market Economies (BIS, 23 page read) Inflation risks are country-specific. In many advanced countries, the zero lower bound is shown to be a prominent source of downside inflation risk. Meanwhile, large exchange rate depreciations are associated with upside inflation risks in EMEs.
Drug pricing trends (Healthcare economist, 1 min read) Healthcare costs are a large part of core CPI – this data finds most drug prices falling.