October 6, 2020
In a column written for Investor Daily, GSFM’s Stephen Miller examines the spectre of inflation.
For those of us whose formative years encompassed the 70s, the spectre of inflation (or stagflation) always looms large. Indeed, a number of us could (quite rightly) be accused of “crying wolf” on the inflation threat several times over the last 30 years. However, the thing to remember about the boy who cried wolf is that the wolf turns up in the end.
In the same way, despite serially overblowing inflation concerns over 30 years, the economists who cried inflation might be right in the end and, just as in the parable about the boy who cried wolf, policymakers and markets might be just as ill-prepared as the sheep-owning villagers.
Why that might that be the case is outlined in a new book by the highly respected academic economist and former member of the Bank of England monetary policy committee, Charles Goodhart, and former head of global economics at Morgan Stanley, Manoj Pradhan, titled The Great Demographic Reversal: Ageing Societies, Waning Inequality, and an Inflation Revival.
To read the full article, click here.