Is inflation about to return? | LIVE STREAM

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After four decades, is the world economy about to shift regimes? Economists Charles Goodhart and Manoj Pradhan argue yes in their new book, “The Great Demographic Reversal: Ageing Societies, Waning Inequality, and an Inflation Revival” (Palgrave Macmillan, 2020).

Globalization’s forward march, the rise of China, and the breakup of the Soviet Union characterized a regime that began in the 1980s. In this period, the number of workers rose along with the ratio of workers to dependents. This led to higher profit shares, increasing in-country inequality, a global savings glut, declining real interest rates, and weak inflation.

Dr. Goodhart and Dr. Pradhan argue that this is about to change and that a new era of high inflation will begin. They discuss their new book with AEI’s Michael R. Strain.

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