Posts Tagged ‘inflation’

After spending last year fretting about the damage to economic growth from the global financial crisis, many investors are now worrying that policymakers’ medicine may prove too effective.

The fear is that the stimulus injected by central banks, via interest rate cuts, and by governments, via additional spending and tax reductions, will create an intractable inflationary spiral that will force interest rates sharply higher and erode the value of fixed income assets. (more…)