Why the most important hedge is against unexpected inflation
High asset prices stem from low inflation and interest rates
IT IS HARD to say precisely when a cherished theory of inflation lost its sway. But if you had to pick a moment, it might be during an exchange last July between Alexandria Ocasio-Cortez, a first-time congresswoman who had risen quickly to prominence, and Jerome Powell of the Federal Reserve.
This article appeared in the Finance & economics section of the print edition under the headline “Feeling TIPSy”
Finance & economics January 4th 2020
- The causes of a booming stockmarket are unlikely to last through 2020
- Trade negotiators have missed a deadline to help protect fish stocks
- Grab and Singtel will bid for a digital-banking licence in Singapore
- A study suggests that higher minimum wages hit poorer bosses’ pockets
- Why the most important hedge is against unexpected inflation
- China’s industrial policy has worked better than critics think
From the January 4th 2020 edition
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