Inflation: The inflation delusion

Inflation is our friend. That’s the seductive thought being put about by an increasing army of pundits. In a deflationary world, what’s needed is a policy of deliberately creating inflation, they say. That way, the “real” value of the world’s debts would be reduced, banks would return to health, homeowners wouldn’t struggle to pay their mortgages, leveraged buyouts wouldn’t be drowned in debt and the rest of us could get back to business. Crispin Odey, the UK hedge fund manager has advocated suc...