, Columnist
The Reflation Trade Has Believers in Frankfurt
Just when the market appears to have lost faith, the European Central Bank arrives with a display of commitment to raise inflation.
Children play with virtually worthless paper money during Germany’s hyperinflation in 1923.
Photographer: FPG/Archive Photos/Getty Images
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If inflation doesn’t rise over the next few years, it won’t be for want of trying. Last year the Federal Reserve moved to average inflation targeting — meaning it could happily allow the rate to be higher than its official target of 2% for protracted periods. And on Thursday, judging by a briefing from officials in Frankfurt, we can expect the European Central Bank effectively to follow it.