A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
Kerry Craig
Opinion

Opinion

Macroscope by Kerry Craig

Inflation fears are not unfounded but a nightmare scenario is unlikely

  • True, an inflation spike and sharply higher bond yields would derail markets. But this is unlikely given the slack in the economy and central bankers’ reluctance to unwind easy policy

Kerry Craig
Kerry Craig

Updated: 7:15pm, 8 Jan, 2021

Why you can trust SCMP
A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
A statue of George Washington overlooks the New York Stock Exchange. In the worst-case scenario, should inflation surge and central banks stop mopping up bonds, stock markets could unravel. Photo: AFP
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Kerry Craig

Kerry Craig

Kerry Craig is a global market strategist at JP Morgan Asset Management.