Press review
Treasury Today
"Nobody is looking at inflation. I believe that everybody should be looking at nothing else,” says Riccardo Rebonato, Professor of Finance at EDHEC Business School and EDHEC-Risk Institute. “The world was obsessed by inflation in the 1970s-1980s, and completely forgot about it in the new century.” The unprecedented build-up in liquidity due to government spending and debt issuance to fight the economic impact of the pandemic will soon see economies take off and prices rise as the vaccines return life to normal. The scale of central banks’ response to coronavirus, combined with a huge fiscal stimulus like Biden’s proposed US$1.9trn COVID-19 relief bill, is going into the pockets of firms and people, rather than just the banking system. The ten-year US “break-even” rate — a proxy for investors’ inflation expectations over the next decade — is starting to rise. It has climbed from below 1.6% in September to about 1.9%, the highest since May 2019 and just below the Fed’s average inflation target of 2%. In the eurozone, inflation expectations are still well below the ECB’s target of just below 2%.”
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https://treasurytoday.com/insight-and-analysis/short-reads/the-inflation-dragon…
2021
