After a prolonged era of cheap money and double-digit returns, the sharp spike in inflation to its 40-year high in 2022 was a game changer.
That the Goldilocks scenario of moderate growth and low inflation has been rudely interrupted of late is not in doubt; nor, for that matter, is central banks’ resolve to tame the current inflationary spiral. In the rich world, they are now walking a perilous tight rope, after virtually abolishing risk pricing in capital markets over the last 12 years. The scope for policy mis-steps now is enormous as central banks seek to pull off the highly desirable ‘soft landing’ that minimises both inflation and recession risks at the same time.
You can now read the full whitepaper at the link below