Super Mario and the return of supply-side economics, Inflation primed to return
Thursday 25 March 2021 – Vol.12 Ed.12.4
Commentary: Super Mario and the return of supply-side economics
By Massimiliano Castelli in Zürich
The appointment of Mario Draghi as prime minister of Italy in February boosted hopes that the former president of the European Central Bank will do what nobody else has managed to: address Italy’s structural weaknesses. Reforms and public investment plans for Italy such as those envisaged by Draghi and supported by the ERF provide great opportunities. We will see whether Draghi can find success where others have failed.
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Commentary: Inflation primed to return
By Chris Papadopoullos in London
Base effects from last year’s oil price crash and bottleneck issues in freight and semiconductor markets should lift inflation above central bank targets over the next six months. Further price pressures will come as households spend their savings as lockdowns end. The question for central banks is whether inflation will fade back to the below-target trend seen over the 2010s or if we are entering a new regime, with target or above-target inflation becoming the new norm.
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