people's expectations are generally adaptive in the sense that you expect for the future what you have observed in the past. And what people have observed in the past have been three decades of declining and then very low inflation. Most people now working in banks and investment banks have known nothing other than low and declining inflation. And therefore, particularly with central banks saying that they will bring it back to target, inflation back to target, and with many mainstream economists claiming that the longer term future is still going to be secular stagnation and lower for longer, that their expectations of the longer term future is that we're going to revert to very low inflation. And our book takes the opposite line. And therefore, it's no surprise with central banks, most economists and their own experience leading them to expect that things will go back to what they're used to seeing in the past, that longer term expectations about inflation, it will return to the low (41/43)
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