Would you, as a private investor, buy a 10-year corporate bond that yields 0.5 per cent? Münchau

Assume you trust Mr Draghi’s commitment to the inflation target. 

Would you, as a private investor, buy a 10-year corporate bond that yields 0.5 per cent? 

If inflation really were to reach 2 per cent within two or three years, you would surely make a loss. 

The only reason you would want to make a long-term investment at these rates is that you do not believe in the target.


Wolfgang Münchau, FT 13 March 2016