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“Inflation Expectations: The US Dollar and 10-year Government Bond Yield”

Posted by
February 9, 2011
in Blog

“On Saturday, Allan Meltzer made the statement that “Inflation is coming.” Like the 1970s, we are in for another bout of high unemployment and inflation, which “flummoxed” the Federal Reserve’s policy committee and created a situation in which ”inflation and unemployment rose together throughout the decade.”

The market evidence for this?

Commodity and some materials prices have increased dramatically in the past year. Countries everywhere face higher inflation. Despite the many problems in the euro area, the dollar has depreciated against the euro, a weak currency with many problems, suggesting that holders expect additional dollar weakness.” Read more

“Inflation Expectations: The US Dollar and 10-year Government Bond Yield” 
John M. Mason 
Seeking Alpha, February 9, 2011. 

Image by Evgeni Dinev / FreeDigitalPhotos.net.