Back to the Future
Periodic commentaries on the “World after COVID” typically include economics. Inflation, a function of COVID-inspired lockdowns, appears to be the mot de jour for these commentators. However, answers to this bete noir of post-war economics appear to be scant. Interest rates, inflation’s uncomfortable bedfellow, may be redundant as the balance of debt has shifted from the personal to the public. Absent rate management, it is likely that we will see more debate about a return to Keynesian economics and “demand management”. Thus, policy reactions to the economic impact of COVID is more likely reminiscent of the 1950s than the 2010s. Back to the Future, indeed.