Financial repression

Gillian Tett’s perceptive article on financial repression has got a lot of people in the markets very worried. The term has an ominous ring to it. Like the term “inflation tax”, it sounds like the kind of underhand policy option which might appeal to governments because it enables them to reduce debt without the victims actually noticing any pain, at least for a while. And that is exactly what it is. But however tempting it might be to go down this path, governments might find it a difficult option to pursue in present circumstances. Read more