Neil Hume questions why recessionary indicators such as trade tensions and falling bond yields have not raised gold prices (Tail Risk, May 30). Gold is a hedge against inflation. Bonds are a hedge against deflation. Flat gold prices and falling bond yields indicate that investors are focused on deflation. They are less concerned that tariffs will raise prices than that the trade war will threaten global growth.
Signs that Investors Are Focused on Deflation
Willem THORBECKE
Senior Fellow, RIETI
May 31, 2019 Financial Times
August 27, 2019
Article(s) by this author
-
Why Japan lost its comparative advantage in producing electronic parts and components
October 4, 2019［VoxEU Column］
-
Liberalising Trade Will Power Asian Economies
October 3, 2019［Newspapers & Magazines］
-
Oil Prices and the U.S. Economy: Evidence from the Stock Market
September 6, 2019［Policy Update］
-
Signs that Investors Are Focused on Deflation
August 27, 2019［Newspapers & Magazines］
-
Ditching ‘omotenashi’ will not deliver inflation target
August 8, 2019［Newspapers & Magazines］
