Hugh Hendry: Japan has taken bold steps

Eclectica Asset Management's Hugh Hendry reckons we could soon be seeing inflation in Japan.

Money printing (quantitative easing, or QE) in the US has released "the shackles on global macro performance", says Hugh Hendry of Eclectica Asset Management. QE has forced creditors "to transfer their wealth to the economy's entrepreneurial and household sectors", staving off "the very real prospect that the US economy would endure the hardship and misery of an economic depression comparable to that of the 1930s".

While this asset price inflation has mainly benefited the wealthy, and generated a political backlash in the process, President-elect Donald Trump's plans to spend huge sums on infrastructure and tax cuts should heal "the political fissures brought on by QE", says the hedge-fund manager.

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