The battle that has raged for many years between the proponents of deflation and inflation has faded into irrelevance as it is increasingly clear that we are going to have both, in swift succession. The deflationists, like Albert Edwards, will claim victory in the current battle, but my sense is that the inflationists will win the war. Meanwhile, like the Montague and Capulet families cursed by Shakespeare’s Mercutio in Romeo and Juliet, this novel plague has enveloped us all. Covid-19 has overturned our sophisticated world and upended our priorities. As a global society, how could we have been so stupid as to neglect our collective human health?
A plague on both your houses!
The Economist
