Should we be worried about inflation?

Tim Farrelly  |  farrelly’s Investment Strategy  |  26 June 2020

The impact of Covid-19 and, in particular, the massive worldwide government fiscal response to the crisis, has sparked new discussion about the risk of an upsurge in inflation. Some argue that, ultimately, huge government deficits do matter, that this round of Quantitative Easing (QE) is monetising those deficits, and that maintaining demand in the face of falling supply will all contribute to rising inflation. Further, decreasing globalisation will increase cost pressures. There are counter-arguments such as we are on the cusp of a depression and the fall in demand will persist long...

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