2022: Regime Change for the Global Economy?
No longer driven by minimal inflation in prices, negligible interest rates, steadily falling bond yields, growing inequality, and fantastic returns on asset prices, it’s possible that the return of rising prices in 2021 will at last force a new way of doing things.
With inflation a serious practical problem for the first time in a generation, the assumptions that “there is no alternative” to stocks, or that independent central banks can defend confidence in the currency, finally come into question.
In theory, the explosion of inflation this year should have driven a big rise in bond yields, and might well have dragged down share prices. Nothing of the kind has happened.
John Authers Bloomberg 23 December 2021
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