What is the best inexpensive knife sharpener?

Use a flyle.

I mean a file :)

How about a Gatco Tri-Seps? It's a short ceramic rod, looks like a section of Sharpmaker rod with rubber bumpers on the ends to help you get the angle right.

For more agggressive work, get a small DMT diamond sharpener. They've got everything from a credit card size to a folding version like a butterfly knife, to larger benchstones.
 
Any of the handheld sharpeners mentioned by Esav are at $20 or less. My fav in that group is the EZE LAP diamond rod.
 
For a regular stone, I like Norton's fine india. The Hewlett diamond rods are are very good also . They come in various sizes from 4" to 12" length.
Scott
 
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