Photo: Morgan Stanley
Bernanke is fighting deflation, but the inflation threat looms large over global markets. Last week, China expressed sincere worries its inflation situation was getting out of control, and it would need to take steps to tighten. The Shanghai Composite plummeted the next day.But does the rest of the world have to worry about inflation?
From the looks of it, not yet. Emerging markets have been experiencing ample inflation, but the west still lags behind. Expectations are rising however, and investors may be readying for the scenario.
Morgan Stanley have the visual breakdown of why we’re expecting an inflation deluge, and what it means for markets.