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What is reflation?

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What is reflation?

I see the term "reflation" being used a lot now . What does it mean in layman's terms? Thanks Ian

Answer

Hi Ian,

Reflation in simple terms just means an improvement in the economy. Growth picking up generally leads to higher prices for things is called inflation.

In that environment, interest rates generally go up which we’ve seen in the rise of longer dated bond yields.

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US 10-year Bond Yields
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