‘Painfully slow capitulation’: Why investors keep getting inflation wrong

A brutal third quarter in financial markets is about to come to a close and one thing is overwhelmingly clear: Inflation is the single most important factor driving financial markets right now and yet few, if any, people seem able to get it right.

The reason? Professional forecasters, policy makers and traders all keep dismissing the way inflation behaved in the 1970s, according to BofA Securities global economist Ethan Harris. That’s when inflation — fueled by the

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