Our lonely view has been for some time that slowing growth might not lead to lower inflation and interest rates in the U.S. This has been confirmed in the first quarter of 2007 as an obviously slowing U.S. economy has seen accelerating inflation. We have now been joined by many commentators, including some who are using the dreaded “stagflation” word. Thanks to the enterprising Daniel Kruger of Bloomberg News, we turn to economist Paul Samuelson, whose textbook was the Economics 101 primer for a generation, for validation:
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Canso April 2007 Corporate Bond Newsletter
