We all know what happened next. Central bankers were wedded to aworld that no longer existed. They thought the 2021 inflationary pressure was “transitory” and would soon peter out. It did not and, in fact, still looks stubborn across many countries in early 2023, despite the monetary tightening that has occurred so far. Airlines have merged from 12 in 1980 to four today, which now control 80% of domestic seating capacity. ii. have there been signs of monetary excess sufficient to indicate a heightened inflationary risk? it makes economic planning incredibly difficult, causing people to invest time in thinking about inflation to the detriment of more productive activities (Germany: buying two beers at the same time; Turkey: hoarding washing machines),

it leads to extreme redistributions of wealth that are rightly perceived as arbitrary and unfair, and it makes economic planning incredibly difficult, causing people to invest time in thinking about inflation to the detriment of more productive activities, Have there been institutional changes suggesting an increased bias in favour of inflation? King argues that central banks’ bias against deflation during the past decade may have created a bias in favour of inflation. Quantitative easing also removed an early indicator of inflation.

14 Urgent Lessons from the Last 2,000 Years

Why not? Industry experts say oil and gas companies saw bigger money in letting prices run higher before producing more supply. They can get away with this because big oil and gas producers don’t operate in a competitive market. They can manipulate supply by coordinating among themselves. Since the 1980s, two-thirds of all American industries have become more concentrated Celebrated economist Stephen D. King—one of the few to warn ahead of time about the latest inflationary upheaval—identifies key lessons from the history of inflation that policy makers chose not to heed. From ancient Rome through the American Civil War and up to the asset bubbles of today, inflation stems from policy error, sovereign greed, and a collective loss of faith in currencies. A ‘rules-based’ policy framework is important: the public need to know how policymakers are likely to respond Boeing and McDonnell Douglas have merged, leaving the US with just one large producer of civilian aircraft: Boeing.

There was also a tendency for some policymakers to claim that inflation was being generated outside of their field of influence, according to King - in a similar vein to UK Chancellor Barber’s claims in the 1970s. In other words, that some believed the source of inflation was not something that policymakers could control. In this I always look with admiration at Procter & Gamble. For a decade or more, it has looked unfavourably at any commercial proposal that doesn't embrace nearshore and offshore centres of excellence. It's a standard requirement for a global business that reaps the benefits of connecting great teams no matter where they are based. A myth-busting explanation of inflation, the desperate gullibility of central bankers and finance ministers—and our abject failure to learn from history Not just a useful and well-written account of inflation for the layman, but a contribution to a debate that is still very much live. A brilliantly clear and concise new history.”—Juliet Samuel, Times (UK) A shame, because nothing is more topical than inflation at this point in time. But this book was poorly served by its structure.Policymakers are not easily able to distinguish inflationary squalls from periods of inflationary persistence Counterintuitively, King argues that defeating hyperinflations may be easier than the more modest inflation that we see today. The damage of extreme hyperinflations is so obvious and typically is the result of acomplete breakdown in monetary discipline. As aresult, policymakers and the public are eventually more accepting of the strong medicine needed to bring hyperinflation to an end. Acredible push to implement the structural changes needed to eradicate it are unlikely to run up against many hyperinflation “enthusiasts.”