Inflation or deflation? FROM The Economist

Long term, the inflationists look to have a better case. The world has paper money and the central bank that runs its reserve currency (the dollar) has repeatedly erred on the side of loose monetary policy, for economic and financial reasons. Emerging markets, nowadays the drivers of global growth, have loose monetary policies in aggregate. Treasury bonds may occasionally benefit from flights to safety over the next few months, particularly as the banking sector continues to struggle. But it is hard to believe that yields of 4% or so will look good value in five years' time.