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Whats in the tails? - Inflation: The defining macro story of this decade

June 7, 2021
This paper examines the potential for higher inflation and a return of boom/bust cycles over the next few years. The report notes the very role of government in the economy is undergoing its biggest shift in 40 years manifested in the receding fear of inflation and rising levels of government debt that shaped a generation of policymakers. Replacing it is the perspective that economic policy should now prioritise broader social goals. At its heart the research report debates whether inflation is transitory or the pursuit of these important social priorities by governments will mean inflation will have longer-term and far reaching implications for the health of the global economy. Either way, higher inflation is coming and policymakers are about to face their toughest battle in 40 years. [more]

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