The UK’s inflation myth. I wonder how many more myths are stilt going around.
http://www.bloomberg.com/apps/quote?ticker=UKGGBE05:IND
http://ftalphaville.ft.com/blog/2011/12/13/795881/the-uks-inflation-myth/
http://en.wikipedia.org/wiki/Fisher_equation
Notice that the interest component in the inflation indexed bonds (there are such things) has no RISK because. I wonder if that is because the British gov can always monetize its debt thanks to the Bank of England acting as lender of last resort.
sounds familiar, page-14
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