It is amazing, given the high level of uncertainty in the world at the present time, that financial markets are as calm as they are. Whither the Japanese nuclear accident, the Libyan civil war and the Arab Awakening, the Ivory Coast, the euro zone bail-out system, or how will China’s encouragement of higher standards of living in the hinterland alter the terms of international trade and the cost of Chinese products ? |
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Our focus this week however falls upon the two unresolved riddles of the US economy, inflation and quantitative easing. |
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