The high stakes of rising inflation

Project Syndicate/Otmar Issing/11-30-2021

graphic image inflation ahead sign“The argument that today’s inflation is only temporary assumes that global unemployment remains substantial, and that trade unions are weak. In that case, there would be no reason to expect that wages will increase significantly, leading to a sustained rise in prices. But that may not be the case, because the global economy is at a turning point: conditions may be shifting from deflationary to more inflationary overall.”

USAGOLD note: Issing is the former chief economist for the European Central Bank. His argument gets us back to the theory making the rounds earlier in the year that we are in the early stages of an important paradigm change –  from a global disinflationary environment to a new age of inflation.

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