Inflation is Asia's problem, not the world's

The unsustainable spike in food and energy prices is good news for the rest of the world but, in Asia, inflation is here to stay.

Rising crude oil and food prices are hammering economies worldwide, but runaway inflation is not a serious threat to the global economy, according to an economist at Deutsche Bank. In the developed economies, the opposite could well be true.

Marcel Cassard, Deutsche's global head of fixed income and economics research, says that implied volatility for inflation markets in Europe is pricing in expectations that inflation will return to levels experienced in the 1970s. They are, in other words, very rich,...

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