During the 19th century, several German and American scientists undertook experiments observing the reaction of frogs to slowly heated water. Without exploring the detail of the experiments or the debate over their scientific validity, they spawned the parable about a frog being boiled alive if cold water were heated at a sufficiently slow rate that the frog failed to adjust to its changing circumstances. At Ardea we think about inflation somewhat like the frog parable – it is that persistent and gradual feature of the fiat money system that ‘melts’ the purchasing power of our money over time. But that’s not the end of the story. We believe inflation still presents a risk for three reasons...