Lacy Hunt: Bonds, Growth, and Jobs In a "Disinflationary Stew" (Danielle DiMartino Booth)

With inflationary concerns weighing upon bonds, how should investors think about the future of yields and their key drivers such as growth, employment, and monetary and fiscal policy? In this conversation with Danielle DiMartino Booth of Quill Intelligence, Lacy Hunt, chief economist at Hoisington Investment Management Co., argues that a growth in money supply does not necessarily create inflation if the velocity of money is low since the extra money supply remains trapped in the financial system. Booth and Hunt consider the acceleration of secular changes such as reliance upon technology, which increases productivity and is therefore a disinflationary pressure. Key learnings: Hunt and Booth argue that the recent rise in U.S. Treasury yields doesn’t take into account vital structural changes such as the decline in the velocity of money and in the marginal revenue product of debt. As such, it is possible that the inflationary fears that have recently rattled the U.S. Treasury market are overblown.



Thanks for watching The Interview, the premier business and finance interview series in the world.

Subscribe to our channel now for more videos like this one: https://rvtv.io/subscribe

Do you want even more content like this? And to see this video before we release it here? Become a member of Real Vision -- get started for 7 days for only $1: https://rvtv.io/membership

About Real Vision™:
Real Vision™ is where you can gain an understanding of the complex world of finance, business and the global economy with real in-depth analysis from real experts.

Connect with Real Vision™ Online:
Twitter: https://rvtv.io/twitter
Instagram: https://rvtv.io/instagram
Facebook: https://rvtv.io/facebook
Linkedin: https://rvtv.io/linkedin

Lacy Hunt: Bonds, Growth, and Jobs In a "Disinflationary Stew" (Danielle DiMartino Booth)
https://www.youtube.com/channel/RealV...

For the transcript visit: https://rvtv.io/TheInterview

Disclaimer:
This is pretty obvious, but we should probably say it anyway so that there is absolutely no confusion…The material in REAL VISION GROUP video programs and publications {collectively referred to as “RV RELEASES”} is provided for informational purposes only and is NOT investment advice. The information in RV RELEASES has been obtained from sources believed to be reliable, but Real Vision and its contributors, distributors and/or publisher, licensors, and their respective employees, contractors , agents, suppliers and vendors { collectively, “Affiliated Parties”} make no representation or warranty as to the accuracy, timeliness or completeness of the content in RV RELEASES. Any data included in RV RELEASES are illustrative only and not for investment purposes. Any opinion or recommendation expressed in RV RELEASES is subject to change without notice. RV Releases do not recommend, explicitly nor implicitly, nor suggest or recommend any investment strategy. Real Vision Group and its Affiliated Parties disclaim all liability for any loss that may arise (whether direct indirect, consequential, incidental, punitive or otherwise) from any use of the information in RV RELEASES. Real Vision Group and its Affiliated Parties do not have regard to any individual’s, group of individuals’ or entity’s specific investment objectives, financial situation or circumstance. RV RELEASES do not express any opinion on the future value of any security, currency or other investment instrument. You should seek expert financial and other advice regarding the appropriateness of the material discussed or recommended in RV RELEASES and should note that investment values may fall, you may receive less back than originally invested and past performances is not necessarily reflective of future performances. Well that was pretty intense! We hope you got all of that – now stop reading the small print and go and enjoy Real Vision.