Edward Hadas is Economics Editor at Reuters Breakingviews. He joined Breakingviews in both 2004 and 2011, with a year in between at the Financial Times as Assistant Editor of the Lex column. Before becoming a journalist, he worked for 23 years as an equity analyst in Europe and the US. He has written a book, Human Good, Economic Evils: A Moral Approach to the Dismal Science (ISI Books, 2007), and a course-book about political philosophy for the Maryvale Institute in Birmingham. Edward has degrees from Columbia University, Wadham College, Oxford and the State University of New York at Binghamton. He has a website, edwardhadas.com. Follow Edward on Twitter @edwardhadas
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A big pay deal in the sector is a small positive sign. Higher wages are the only sure way to reverse a global trend of lower prices. But it’s not enough. Germany’s ability to issue five-year debt with a negative yield shows the downward trend is stronger, nationally and globally.
In 2005, a Barclays strategist suggested a declining population of savers could push bond and stock prices down. A decade later, a different strategist at the same bank says the same thing. It may work out in time, but demographics have more influence on GDP than asset values.
It’s probably right to think most poor countries will gradually get richer. And nations short of capital and expertise can benefit from foreigners who make serious commitments. But the “frontier” indexes have the wrong member countries and aim at an unsuitable sort of investor.
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