Aug 25
On “is there a government bond bubble”…
A one-time jump in prices of this magnitude would leave the nominal price of outstanding nominal bonds unchanged, but reduce the real price (the purchasing power of nominal bonds) by 58%.
…
And it doesn’t take much of an increase in expected future inflation to do a very big number on the prices of long-term bonds.
Opinions differ in this Economist online debate… but none of them are encouraging.