Summary: Over the past few years, investors who have expected aggressive monetary policy to produce high levels of consumer price inflation and have invested accordingly have been disappointed. The right question goes to why consumer price inflation has remained subdued and whether it will continue to do so. Below are a few comments on this topic.
I am due to be at a Euromoney conference on inflation-linked products all day tomorrow. I believe my view here is reasonably clear but I thought today would be a good time to revisit the theme of investing in a world of low interest rates and aggressive monetary policy. The last time I addressed this question was in August when I laid out How the United States gets deflation and becomes the next Japan. My thesis was as follows:...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.