Inflation might be the way out of the debt crisis

A year ago, central banks and governments were forced to take unprecedented measures in real time to avert a 1929-style depression. The resulting skyrocketing debt will doubtless weigh on future generations, but, for now, it seems the only game in town to reboot national economies by making them even more debt addicted.

For this entire house of cards not to crumble, growth and inflation need to be restored. 

At the outset of the crisis, the Fed’s bold action — including large-scale financing of government debt — was timely. Now it is hard not to see it will lead to a de-anchoring of inflation expectations and a revival of the spectre of a 1970s-style growth in prices.

The writer is group chief investment officer at Amundi

FT 8 April 2021

https://www.ft.com/content/c7ebe679-3373-4f01-94fe-015bf80c4d3b

Investors plough money into US inflation-protected bond funds

Tips funds enjoy 29 consecutive weeks of inflows

FT 23 April 2021

https://www.ft.com/content/951002b3-5938-41e3-9294-d7b7db38156f

Volcker startade sedelpressarna, inte Greenspan

https://englundmacro.blogspot.com/2014/04/volcker-startade-sedelpressarna-inte.html