Why a ‘1970s-style’ inflation spiral is a growing threat, according to a major hedge fund

One of the world’s largest macro hedge funds sees a rising risk of a 1970s-type wage-price spiral, according to a Thursday news report.

“This combination of high inflation, tight labour markets, and uncertain inflation expectations introduces the prospect of a 1970s style wage-price spiral which proved very costly to reverse during the Volcker Era,” Brevan Howard Asset Management said in a note to shareholders of a listed fund that it manages, Bloomberg reported.

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