|Joachim Fels – PIMCO
Three Reasons the Global Economy Could Top Out in 2018
Summary: The current “Goldilocks” environment of growth and low inflation is likely to persist in 2018, but PIMCO believes that global growth could be nearing its peak based on three factors. First, fiscal reforms in the US are borrowing from the future by lowering expenses now but increasing the costs of future deficits. Second, cyclical pressures such as wage growth may finally catalyze higher inflation. Finally, the reduction of monetary accommodation may be too much for some economies to handle.