Inflation: The elephant in the room

Inflation: The elephant in the room

Perhaps the most over-used expression in the aftermath of the financial crisis was ‘the elephant in the room'.

Having experienced the near implosion of the world’s financial system, it was hardly surprising that economists and strategists continued to see major threats to longer-term stability they thought were not being addressed. Six years on, while there are still issues that have yet to be fully resolved, the world has begun to normalise. However, there is one potential hazard that, should it become manifest, would represent a more significant threat to stability: inflation. While conventional economic analysis would have warned that injections of liquidity through quantitative easing (...