We’ve read about it in the press, we’ve read about it in blogs and we’ve read about it in broker research notes. We are of course talking about inflation.
While we don’t think an outbreakÂ is imminentÂ we understand that policy makers might have a secret ambivalence to manufacture some because of what it does to debt to GDP ratios. We suggest that manufacturing above trend inflation for a period might not be such a good idea given what it did to realÂ returns and markets in the 1970’s.Â
We welcome any comments you may have.
To read the note simply click on the link below.