In today’s Macroeconomic Briefing Capital Economics ask whether there’s any credence to the idea that the Phillips Curve is back from the dead, as wage inflation becomes much more omnipresent across the globe. Their conclusion is that many economists are overstating the risk of a broader inflation outbreak. Jan Hatzius and his team at Goldman Sachs write that while monetary policy in small, open economies must take into account the policy setting abroad as well as domestic economic conditions, this approach is not without trade-offs. They cite the Nordic countries as examples, as central banks there look to commence their hiking cycles. We also revisit cross asset correlations and how they’re changing amid recent market volatility with Nomura and SG, and finally OM Research write about how recent newsflow on the trade wars, including the renegotiation of NAFTA, provide a much better understanding of what the America First approach is to international negotiations.