"Quantitative Easing (QE) is sometimes referred to as the biggest financial experiment ever conducted. We are the guinea pigs.
The burning question is why the oodles of newly-minted money have not ignited inflation and destroyed public confidence in paper money. Jens Weidmann, President of the Bundesbank, has highlighted “the inflation risks arising from the overly expansionary monetary policy” since taking his role in 2011. Partly as a consequence, ECB monetary policy remains very tight by global standards. Yet inflation is subdued just about everywhere and everyone’s favourite anti-inflation investment, gold, is in poor health."
Read the full commentary from 7IM here.
Chris Darbyshire, Chief Investment Officer, Seven Investment Management