Most read 2021: Covid-19 spending triggers inflation debate —
Wednesday 29 December 2021 – Vol.12 Ed.52.3
Top stories of the year: US inflation surge is harbinger of what’s to come
By Steve Hanke in Baltimore
Inflation returned as many expected in the first half of 2021. Steve Hanke, writing following US headline inflation of 4.2% in April on 12 May, predicted that this was only a sign of things to come. Hanke argued that the increase in the money supply, something that Fed Chair Jay Powell admitted to not paying much attention to, was to blame. With US headline inflation spiking to 6.2% in October, perhaps it is time that the Fed pays more heed to this key metric.
Read the full commentary on the website.
Top stories of the year: Why low inflation could last 50 years
By Meghnad Desai in London
Meghnad Desai, writing on 14 January, had a much different opinion than Hanke. But he had taken a longer-term view, suggesting that demographic pressures and shifts in manufacturing had created the conditions for low inflation over the next 50 years. Inflation increases during the year may only reflect short term pressures. As the world emerges from the depths of the pandemic and price pressures could prove transitory, Desai may yet be right.
Read the full commentary on the website.