Montag, 18. Oktober 2010

Monetary Policy: Inflation


Today's Financial Times features an important article about inflation in the US. Investors are expecting inflation to be higher in the longterm. The graph on the leftern side is exhibiting the implied inflation rates of bonds maturing in 10 years.
On the rightern side you see the increasing yield of 30 year bonds. Apparently investors believe that the Fed will have problems to control inflation caused by the renewal of the quantitative easing program (so called QE2).

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