By Stephen McPhie, CA
RSD Solutions Inc.,
The American and British cure for many of our current ills has been printing money. Quantitative easing as those who practice it are concerned. Germans, especially the head of the Bundesbank are dead set against it. They view it as a way to let some countries off the hook. They also believe it will lead sooner or late rot inflation – a logical view.
Perhaps like many, for or against it, you just desperately hope for the best and that it will work somehow and lead to strong growth. However, if you are a financial executive in the US or UK, do you also countenance the inflation possibility? A medium term view is important and the consequences of inflation should be considered in risk management. In spite of a benign rate environment, caused partly by flight to quality), consequences include higher interest rates.
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