Do not rely on interest rate cuts (FT.com via Yahoo! News)
Story date: 2007-10-21 11:20:14
Added on: 2007-10-21 19:00:17
Probably the biggest macroeconomic danger the world economy faces over the next two years is a rise in inflation. The problem is not inflation as such, undesirable as it may be, but the wider economic consequences of a rise in inflation under a regime of inflation-targeting central banks. A rise in inflation would trigger global interest rate increases, and this in turn could mark the beginning ...
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