Why bonds be poor investment in period of high inflation

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Reference no: EM13932715

In 2012, an article in the Economist magazine recommended to investors that if economic growth and inflation are low in the United States, investors should buy bonds. But if inflation accelerated rapidly, investors "should buy commodities, especially gold".

1) Why bonds be a poor investment in a period of high inflation? Explain

2) Why would bonds be a good investment in a period of low growth and low inflation? Explain.

Reference no: EM13932715

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