Economy: Desperately Seeking Equilibrium
February 26, 2009 at 12:39 PM EST
The first priority for repairing the economy, or at least for stopping the bleeding is returning prices to something approximating equilibrium. There’s still more work to do, as suggested in the inflation forecast embedded in the spread between the nominal and inflation-indexed 10-year Treasuries. As our chart below reminds, the market is far from convinced that [...]