Lindsay Politi on the Silicon Valley Bank Fall-Out, Duration Bubbles and Inflation
Macro Hive Conversations With Bilal Hafeez
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QE and Inflation
Inflation was always very key to this for two reasons. One is that central banks, you know, having unlimited balance sheets and no stops. And also inflation inherently makes people want to draw consumption forward. Anything with a future value into the future was valued much more highly in the present value than it would have been ordinarily. This is sort of true for everything. It's not just long duration bonds, it's also venture capital or tech companies that aren't generating profit right now, but may in the future.
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