The end of an era

What are the implications of rising inflation for the currency markets? The long answer to this question is not straightforward, but the short one is: rising inflation is not good news, even for a relative market such as foreign exchange, and much of what many have come to take for granted over the past 10 years might be coming to an end.

Since last summer, our investment strategy has been based on the dual shocks of financial crisis and economic slowdown. Conventional wisdom predicts only a

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