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Opportunities in equity, bonds still exist despite high inflation
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The spectre of inflation continues to weigh down sentiment after US January inflation jumped 7.5 per cent year-on-year to its highest rate in 40 years.
PHOTO: AFP
SINGAPORE - Between 1973 and 1982, major market economies of the world went through a phenomenon of slow economic growth and high inflation called stagflation. Unemployment was high.
Mr Paul Volcker, who became chairman of the US Federal Reserve in 1979, helped end the crisis by raising interest rates - which peaked at 13.5 per cent in 1980 - to achieve price stability.
