The Bulletin, March 2022: Inflation: supply- or demand-led?
THE WEEKEND REVIEW
Latest opinion and analysis from OMFIF around the world
7 – 11 March 2022, Vol.13 Ed.10
The Bulletin, March 2022
Inflation: supply- or demand-led? This edition of the Bulletin grapples with the global and insistent issue of inflation. It delves into the various causes of the current bout of inflation, including supply chain issues and soaring energy prices. Akhilesh Tilotia, principal of the National Investment and Infrastructure Fund, gives an insight into how India is managing to keep its supply chains running amid unprecedented levels of demand, while David Marsh, chairman of OMFIF, takes us back to the 1960s to explore what the cold war can teach today’s central bankers. But the most pressing question asked by this edition of the Bulletin is: are we facing the wrong sort of inflation?
| Wrong sort of inflation: Brexit shortages, economies reopening, soaring prices and demand outstripping supply have led to decade-high levels of inflation. But with wage inflation lagging and stagflationary forces building, what we’re left with might be the wrong sort of inflation – cost- rather than demand-led, write Neil Williams and Taylor Pearce. Read more. Return of guns and butter: war, inflation and central banks: With the mood darkening after the invasion of Ukraine, parallels with the 1960s and 1970s are growing ever more striking. As during the peak of the cold war, armed conflict is coinciding with the social and economic pressures of persistent inflation fuelled by soaring energy prices, writes David Marsh. Read more. |
Understanding current inflation demands understanding the supply chain: Inflation is back and the supply chain is the culprit. In Europe and North America, more than a decade of stable prices, low interest rates and high real wage growth has come to an end. Central bankers, policy-makers and households are having heated debates over what to do in this new environment, writes Levin Holle. Read more. Keeping India’s global supply chains operational: Since 2000, India’s share in global merchandise trade has more than doubled to 1.6% in 2020 from 0.7%. The increase in trade has been supported by strategic initiatives of the Indian government to incentivise manufacturing for exports through production-linked incentives schemes and the National Investment and Infrastructure Fund, writes Akhilesh Tilotia. Read more. |
