Not exact matches
While some investors may be worried about slower growing emerging markets, King points out that many
developing countries have successfully stopped
inflation from getting out
of control.
Most governments
of developed countries have spent the last several years attempting at all costs to keep their economies out
of recession, and in doing so appear to have taken their eye
of inflation.
Further rises in the cost
of basic inputs such as energy have since driven consumer
inflation up, even though the
country has the same weak wage dynamics as those seen elsewhere in the
developed world.
A large number
of industrial and a growing number
of developing countries now have domestic
inflation targets administered by independent and transparent central banks.
The Organization for Economic Cooperation and Development said Thursday the annual rate
of inflation in its 34
developed -
country members rose to 1.5 % from 1.3 % in October, while in the Group
of 20 leading industrial and
developing nations it increased to 2.9 % from 2.8 %.
The Organization for Economic Cooperation and Development Tuesday said the annual rate
of inflation in its 34
developed -
country members rose to 1.6 % from 1.5 % in November, while in the Group
of 20 leading industrial and
developing nations it fell to 2.9 % from 3.0 %.
For some years, then, the modus operandi
of a
developed country central bank involved setting a short - term interest rate and adjusting it incrementally in response to forecast deviations
of inflation and / or output from the desired path.
Among the explanations that have been put forward are the increased credibility
of central banks in controlling
inflation (
inflation rates remain below 3 per cent across the
developed world), the low level
of official interest rates in the major economies reflecting low
inflation and the continuing weakness in some economies, a glut
of savings on world markets particularly sourced from the Asian region, and changes to pension fund rules in some
countries which are seen as biasing investments away from equities towards bonds.
A rate
of population increase
of 4 percent is considered extremely rapid; a rate
of price
inflation of 4 percent a year is, in most
developing countries today, considered to be fortuitously slow.
That is the black swan that will be displayed here, and Iceland is the harbinger
of what might be a future trend
of developed country sovereign defaults, or their close cousin, high
inflation.
In terms
of returns for stocks and bonds, as well as for
inflation, the United States enjoyed a rather remarkable run in comparison to other
developed market
countries in the period since 1900.
Seeks to provide exposure to
inflation - linked bonds
of developed and emerging market
countries outside
of the US