For the leaders of America Inc, high inflation is unwelcome. It is also unfamiliar. Warren Buffett, 91, the oldest boss in the s&p 500 index of big firms, last warned about the dangers of rising prices in his annual shareholder letter for 2011. The average chief executive of a company in the index, aged a mere 58, had not started university in 1979 when Paul Volcker, inflation’s enemy-in-chief, became chairman of the Federal Reserve. By the time the average boss started working the rise of globalised capitalism was ushering in an era of low inflation and high profits (see chart 1). Their stock rose between
→ Continue reading at The Economist
