The inflation monster

My post-graduate economics supervisor suffered from one of the most debilitating and chronic diseases known to afflict academics.

Namely the unnecessary profusion and subsequent mangling of similes, metaphors and axioms, especially in relation to the evil force of inflation. I was reminded of his wonderfully vivid images recently in discussion with hedge fund manager Hugh Hendry. Hugh is something of a deflationist who, like Albert Edwards at SG, believes we are only mid way through a decade-long deleveraging cycle which will consume every wave of fiscal and monetary stimulus thrown at it. But Japan is different – Hendry contends the sheer weight of debt, currently internally financed, will sooner or later sink ...