My comment on Frances Coppola's blog "Slaying the inflation monster"

Excellent article.

We have been living in an era of deflation since the 2008 financial crisis with inflation vigilantes worsening the situation from central banks to inflationary hawks by not allowing for the cleansing effects of slightly higher inflation/expectations and a redistribution of income from creditors to debtors. The result, historically low long term yields unable to boost economic growth and employment, economies mired in slow growth and a debt overhang which may take decades to write down to manageable levels if policies remain unaltered. The QE embraced by most central banks of indebted countries does help but should be reinforced without half measures and the threatening fear of higher inflation for it is no more than fear for as long as long term bond yields do not predict otherwise and to my knowledge till very recently, they have been showing the exact opposite.

In fact Central Banks should aspire to create market induced sustainably higher long term yields for its this indicator which should lead us to expect stronger growth.  

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