By Paul rayner, head of UK bonds at SGAM After years of fighting inflation, central banks are cu...
By Paul rayner, head of UK bonds at SGAM After years of fighting inflation, central banks are currently preoccupied with the risk of deflation, particularly in light of the Federal Reserve's move to reduce interest rates to a 40-year low of 1.25%. It is important to distinguish between deflation and disinflation and determine if any underlying inflationary pressures are of a cost-push nature or demand-pull, as the implications for financial markets differ. Deflation is a sustained reduction in the general level of prices, while disinflation is a falling level of inflation. Alt...
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