How inflation swindles the equity investor

It is human nature to go into denial when faced only with unpalatable options. Regrettably, there are seemingly no palatable options to the fiscal hangover that has infected the OECD economies. Yet, having said that, a new NBER working paper by Professor Carmen Reinhart shows governments have been in this position before, and there does appear to be a default mode. No pun intended. What history tells us According to Reinhart, history shows that time and time again, when faced with a massive debt overhang, governments elect to impose what Reinhart calls “financial repression”. Effect...