EFTA Document EFTA01458994

8 December 2015 World Outlook 2016: Managing with less liquidity The goods-services divide suggests the Fed and ECB are misdiagnosing underlying inflation: low goods inflation is a global phenomenon that reflects the dollar up and commodity down cycles. which are accelerated by monetary policy divergence: services inflation is running much stronger and rising. Core goods inflation (25% weight in the US; 38% weight in Europe) consistently runs well below core services inflation. In the US,