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Why are interest rates rising around the world?
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Why are interest rates rising around the world?
As Andrew Bailey of the Bank of England noted yesterday when giving evidence in the House of Commons, interest rates are rising around the world right now, and not just in the UK. The question is, why is that? I recently suggested that this was in part because of the excessive valuations of stock markets, towards which money has been flowing, deflating government bond prices. Now, let me offer another suggestion. This is that markets are signall…
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