Why the markets hate inflation

Why the markets hate inflation
Companies face a steep climb to reach profitability. (Image: Unsplash)
Warren Couillault
I remember opening the mail with my mother at the letterbox one day in the late 1970s or early 1980s. She was shocked to get a letter from the bank saying our mortgage interest rate had increased to … wait for it …18%. Inflation averaged 11.5% pa in the 1970s, peaking at 18% in 1980, as the world adjusted to the Organisation of the Petroleum Exporting Countries (Opec) oil shocks: interest rates had to follow.It took around 30 years to tame inflation, using a solid combination of financial caution and strict monetary policy, s...

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