Cunliffe said possible explanations for the market pricing include that the markets are “wrong” or that the yield curve reflects growing downside risks. “There’s also a possibility that markets have just become very gloomy about the world -- secular stagnation narrative,” he said. “The yield curve for the U.K., for the U.S., for Europe, is pretty much flat as a pancake going out for a number of years and that’s just because they see low growth and entrenched low inflation as the new normal.” (full story)