It has become conventional wisdom that low and stable inflation contributes to economic stability and most central banks in the advanced nations pursue some type of inflation targeting (Svensson 1997). Less widely acknowledged, although arguably more intuitive, is the fact that low-risk government bonds also provide an essential stability anchor for market economies (DeGrauwe/Ji 2013). […]
About Thomas Theobald and Silke Tober
Thomas Theobold is Head of Financial Market Research at the Macroeconomic Policy Institute (IMK) in Duesseldorf, Germany. Silke Tober is Head of Monetary Policy Research at the Macroeconomic Policy Institute (IMK).