The Big Question

Toby Nangle, director - multi-asset group & fixed income and currency team, Baring Asset Management The risk of a major policy error in the West is high. But the path of Western sovereign deleveraging appears fairly predictable from here. I expect every major developed monetary sovereign to tighten fiscally, to inflate and to default on their non-tradable obligations. But this is unlikely to derail the global recovery. This process is already underway in the UK. The June emergency Budget set a harsh course for fiscal contraction. The Treasury and the Bank of England have reversed roles:...