Canadian Investment Review

Inflation: Two Separate Worlds

Written by Jennifer Hughey on Monday, April 19th, 2010 at 2:13 pm

story_images_online debates_Chess-PieceAlthough we’ve experienced relatively stable inflation over the last 20 years, we may soon see it come to an end according to Peter Lindley, President and Head of Investments with State Street Global Advisors Canada.

In his guest analysis for the Inflation Risk Online Debate, Peter listed a signs pointing to the possibility of strong inflation, following an interim stage of deflation, over the next decade — with developed countries and emerging markets the lead actors in this economic play.

So, what is the outlook for inflation globally? Fairly mild for now – with a risk of temporary deflation. The deflation scenario may occur if emerging economies (with China leading the way) try to slow down inflation by doing too much tightening that will bring both growth and inflation to a halt.

What would this lead to? Join the debate to read Peter Lindley’s analysis.

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