Countdown to Senate 2

The major influence in the bond markets for the last few months has been stagflation. While most ec...

The major influence in the bond markets for the last few months has been stagflation. While most economies are showing slower growth, the appreciation in oil prices and the pressure on companies to pass through rising input costs has created a policy nightmare for central banks. The US's Federal Reserve, the Bank of England and the European Central Bank (ECB) are deciding whether to wage a battle on incipient inflationary pressures or to stabilise sinking economies. So far, they have chosen divergent paths. The Fed has aggressively eased in an effort to avert a deep recession, the ECB...