Finance & Fury Podcast

Welcome to Finance and Fury, the Say What Wednesday edition. This week’s question is from Raj. “I would love to have an overview of how certain economic factors are interlinked and impact economies: Inflation, Forex rates, Oil prices, Trade imbalances, Fiscal deficit, Money supply, Repo rates, Yield curves and bond prices, Lending rates and Central Bank monetary policy” Big topic – every one of these factors is related in one way or another – both to the economy and to one another The economy is complex – incredibly interconnected and unfortunately for any economist or policy maker – incredibly hard to accurately predict – or accurately theorise about You can have theories about if one factors moves in one direction – it will affect others in another matter But a lot of this is theoretical – purely to it making logical sense based around models that were conducted in an isolated environment – The world and economy isn’t an isolated environment – change one input and down the road it is anyone’s guess what