When looking at central bank balance sheets lately it’s easy to conclude that your portfolio should anticipate imminent cost-push inflation. After all, if you chart the major central banks’ balance sheets they’re all up and to the right like never before. Well, although this is a remarkable period in history (that may well see relentless inflation and/or sovereign default), it is not without precedent. If you go back far enough you’ll find that the world has experienced this type of environment before… and that the inflationary consequences of monetized fiscal deficits occur only over time. In order to give you a broad view of this subject, here we chart the history of the Bank of England’s balance sheet from 1844 to the present day.

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