", Sign up to our free daily newsletter, The Economist today, Published since September 1843 to take part in “a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress.”. Weighed down by the need to pay for an ageing population and health care, politicians will increasingly favour big budget deficits. The pandemic could amount to $10trn in forgone GDP over 2020-21. Candidates … The … Graphic detail from The Economist. Might these arguments prove correct? A temporary rebound in inflation next year is perfectly possible. Today the inflationistas’ arguments are stronger. For all the talk about “locking in” today’s low long-term interest rates, governments’ dirty secret is that they have been doing the opposite, issuing short-term debt in a bet that short-term interest rates will remain low. The Economist Intelligence Unit (The EIU) is the world leader in global business intelligence. All editions from The Economist. The Economist 2020 Cover is for sure a play on words and themes for 2020 because the cover is set up like a Snellen Eye Test Examination with the black, green and red colors. Yet as we explain this week (see article), an increasingly vocal band of dissenters thinks that the world could emerge from the pandemic into an era of higher inflation. The Bureau of Labor Statistics (BLS) publishes an occupational outlook each year that goes … The pandemic has caused the worst economic crisis in living memory. You've seen the news, now discover the story. Even the arch-monetarist Milton Friedman, who inspired Thatcher, admitted late in his life that the short-term link between the money supply and inflation had broken down. December 16th 2020 The Economist has always distinguished itself for numeracy and analytical rigour. The Economist is analysing polling, economic and demographic data to predict America’s elections in 2020 Read more of our election coverage US 2020 results Charts, maps and analysis of the … Policymakers might even breathe a sigh of relief, especially in Japan and the euro zone, where prices are falling (though rapid changes in the pattern of consumer spending may have muddied the statistics). We consider all interested candidates regardless of discipline or degree preference. It is why central banks can cut interest rates to around zero and buy up mountains of government bonds. The outlook for America looks grim, but that could quickly change, The struggle over chips enters a new phase, The world must not accept the jailing of Alexei Navalny. So while the probability of an inflation scare may have risen only slightly, its consequences would be worse. The search for yield has propelled the S&P 500 index of shares to new highs even as the number of Americans in hospital with covid-19 has surpassed 100,000. But the second inflationista argument is that more persistent price pressures will also emerge, as structural disinflationary forces go into reverse. Our audience is guided by our objectivity and insight on issues as wide-ranging as cryptocurrencies to gay marriage. In the decades since Margaret Thatcher warned of a vicious cycle of prices and wages that threatened to “destroy” society, the rich world has come to take low inflation for granted. Their third argument is that politicians and officials are complacent. ... Daily chart A record number of journalists were behind bars in 2020… For years globalisation lowered inflation by creating a more efficient market for goods and labour. The chances are the inflationistas are wrong. In November Britain’s fiscal watchdog warned that a combination of new issuance and QE had left the state’s debt-service costs twice as sensitive to short-term rates as they were at the start of the year, and nearly three times as much as in 2012. But once they are vaccinated and liberated from the tyranny of Zoom, exuberant consumers may go on a spending spree that outpaces the ability of firms to restore and expand their capacity, causing prices to rise. The new edition of the Worldwide Cost of Living report shows how the Covid-19 pandemic has changed the cost of living in about 130 cities around the world since the start of 2020. The world should be able to manage such a temporary burst of inflation. Before the pandemic even an ultra-tight jobs market could not jolt prices upwards, and now armies of people are unemployed. The Economist Group is a world renowned multinational media company that inspires and connects with the most influential audiences across the globe. Graphic detail from The Economist. Last week, I went through a stack of unread issues of my favorite newspaper, The Economist. After the financial crisis some hawks warned that bond buying by central banks (known as quantitative easing, or QE) would reignite inflation. In the West and in Asia many societies are ageing, creating shortages of workers. Governments should fund fiscal stimulus by issuing long-term debt. In the 2020 election, President Donald Trump will be judged on his handling of the covid-19 pandemic. Low inflation underpins today’s economic policy. The Economist Group provides Internship opportunities on a rolling basis and within most of our business units. Stuck at home, people have been unable to spend all their money and their bank-balances have swelled. Finance & economics The odds of a more sustained period of inflation remain low. The Economist Intelligence Unit (The EIU) is the world leader in global business intelligence. They ended up looking silly. It explains how governments have been able to go on an epic spending and borrowing binge in order to save the economy from the ravages of the pandemic—and why rich-world public debt of 125% of GDP barely raises an eyebrow. We create highly original communication … Their arguments are hardly overwhelming, but neither are they empty. The Economist is keeping tabs on his cabinet, progress and the latest polling. The Economist Events is a part of the Economist Group. In contrast to the period after the financial crisis, broad measures of the rich-world money supply have shot up in 2020, because banks have been lending freely. Central banks have been making a similar wager. La famosa revista The Economist propiedad de los Rothschild ha publicado en el mes de Junio del 2020 una nueva portada muy extraña. ... shows how the Covid-19 pandemic has changed the cost of living in about 130 cities around the world since the start of 2020… Your browser does not support the