The world economy

Regime change

Surging inflation and rising demands on governments have brought a pivotal moment for economic policy, says Henry Curr

The world economy

Inflation and rising demands on governments are changing economic policy

It amounts to an upending of the previous regime, says Henry Curr

The ageing paradox

Elderly populations mean more government spending

They also mean low interest rates

Feedback loop

Is the world economy in a debt trap?

And, if so, how can countries escape it?

Greenbacks for greenery

The energy transition will be expensive

But not catastrophically so

The total cost

Adding up the fiscal drag from ageing, energy and defence

The bill for the future looms ever larger

The long road back

The inflation problem will get better before it gets worse

When current disruptions recede, the underlying rate of inflation will remain higher than before the pandemic

The end of 2%

Policymakers are likely to jettison their 2% inflation targets

Some by choice, some by accident

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