We are about to see the return of our long lost friend: inflation
Britain’s best known monetarist, Tim Congdon.:
“Given that money and nominal GDP do track each other over time, it seemed plausible also to propose that inflation might reach 5pc at some point in the next two to three years.
I now feel that I was being too conservative. The annual rate of money growth to spring 2021 might be between 10pc and 15pc, perhaps even heading towards 20pc. If so, the right sort of maximum inflation rate to expect in the next few years would be in the 5pc to 10pc band.”
Jeremy Warner Telegraph 31 March 2020
“Given that money and nominal GDP do track each other over time, it seemed plausible also to propose that inflation might reach 5pc at some point in the next two to three years.
I now feel that I was being too conservative. The annual rate of money growth to spring 2021 might be between 10pc and 15pc, perhaps even heading towards 20pc. If so, the right sort of maximum inflation rate to expect in the next few years would be in the 5pc to 10pc band.”
Jeremy Warner Telegraph 31 March 2020
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