This could lead to a scenario where inflation rises at a pace faster than does economic growth.
In such a scenario, policy makers would be reluctant to put interest rates up, as it would risk killing off the meagre level of growth in existence, but keeping rates low would prolong the inflation, creating the economic condition known as "stagflation".
David Scott, an adviser at Andrews Gwynne in Leeds had a different world view to Mr Woolnough so was investing in bond funds that were ready for prolonged deflation.
He said: “By the sounds of it, Mr Woolnough’s view hasn’t changed much since we saw him about a year ago. We think the level of debt in the world is now onerous, and will prevent inflation picking up, we prefer a bond fund that is positioned for inflation not to rise, and growth not to rise.”
Mike Coop, investment manager at Morningstar takes a cautious view on global growth and sees value in US government bonds in the current climate, as he believes the balance between the risks and the rewards on offer from those investments is worthwhile.
He takes the view that the outlook for global growth will matter more to the UK economy than Brexit.