"Inflation fears that have spooked financial markets in emerging economies . are likely to prove...


"Inflation fears that have spooked financial markets in emerging economies ... are likely to prove short-lived," says a report from Capital Economics. A cooling off in price increases by the 4th quarter will lead to a recovery in investor sentiment towards EMs. EEM flat YTD.

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  • WMARKW
    , contributor
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    Capital Economics....hmmmmmm. Where do you get the idea that inflation will be cooling off? The US is the largest exporter of inflation in the world, and what makes you think things are changing for the better (lower inflation) in the US. We are just getting started.

     

    The actions of the FED have generally "restrained" the impact of monetary expansion by sanitizing the trillions of printed dollars. However, that currency expansion, like water, will find its way into every crack in the economy and manifest itself in every way no one wants to see. So, if you think inflation is going away, you got another thing coming....and you haven't even made an argument for any mitigation.
    9 May 2011, 01:36 PM Reply Like
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