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Philip Coggan - Germany will be first to feel the benefit
The case to own German bonds is greater than that to own British ones, as a hedge against deflation
Having said previously that investors should own government bonds as a hedge against deflation, I think the case is much stronger to own German bonds than British. The German government will be more fiscally responsible; the German economy will rebound as it has so many times in the past, whereas Britain may be struggling for years; and international investors will prefer the orthodox policies of the ECB to the quantitative easing being practised by the Bank of England.
