Opinion

QE and political risk drives investors to CTAs

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Comment by Joy Dunbar, Editor of Absolute UCITS

“Inflation is the one form of taxation that can be imposed without legislation” - Milton Friedman, economist

Down the ages, one blunt instrument that many governments have used to tackle their sovereign debt problems has been inflation – to burn away the real value of what they owe.

So it is not surprising to see critics complaining that the Bank of England has resorted to printing money, or so-called quantitative easing, to tackle the UK sovereign’s debt pile – as have the central banks in other developed economies, led by the US.

One consequence of this has been to indirectly