The Bank of England expects the price inflation peak to be high, but short-lived: however if it feeds into wage inflation it could seriously undermine both national debt servicing and the property market: that's why the Government appears to be adopting a tight fiscal stance and announcing a large reduction in the civil service. Carefully targeted support with the swiftly rising cost of living is urgently needed for those most in need and, if the Government can't or won't respond, it could be enabled through the voluntary sector: with Government acting as catalyst. However this is a role to which they're not currently accustomed.
Background music: 'Everything has a Beginning' by Joel Cummins.
The range of major drivers which will steer inflation over the years ahead is wide and diverse, but their duration must be considered as well as their positive or negative impact on rates. For example, the drivers most affected by Putin's war in Ukraine are energy shortages and supply chain disruption, and the threat of de-globalisation in future. These all contribute to higher inflation but it is only a more cautionary approach leading towards de-globalisation which will persist. Meanwhile technology, demographics and a swifter transition to low cost alternative energy will all bear down on price rises. In this commentary we take a look at nine major influences on future rates of inflation, and conclude that central bankers are right to be cautious about chasing after inflation with their interest rate policy.
The contrast in wealth distribution between key regions and countries around the world is as stark as ever. In this commentary, using analysis in the Credit Suisse Global Wealth Databook, we look at the convergence we need to achieve in order to help encourage a more egalitarian form of global capitalism. The music accompanying this episode is The Nexus Riddim by Konrad OldMoney
There's no question over Rishi Sunak's commitment to a strategy to encourage people to work; however, faced with a major cost of living crisis for those on the breadline,there's a real need to complement it with a strategy for sharing. If HM Treasury is not inclined to assist, it should at least set out a plan to encourage those who will.
Accompanying music - Bike Sharing to Paradise, by Dan Bodan
The existential threat of mutually assured destruction has kept the world safe from nuclear weapons for the past sixty years but, now that balance is being challenged by a combination of insanity and ignorance, it this just leaves us with economic action. Let's make sure that the trade policy of the free world is adjusted accordingly.
Music accompanying this episode is from 'Mad World' by Jennifer Ann.
For the past fifty years, nearly all major conflicts have been driven by economic power granted to tyrants by our dependency on fossil fuels. We must now recognise the awful footprint it has left in terms of human suffering, as well as climate change. The huge rise in fossil fuel prices will bring substantial dividends to those who look for opportunities to invest in the new ways of powering the economy, and could kick-start moves to a safer and cleaner world.
Imagine a world in which everyone has a stake in the great tech firms that serve them each day, and where dividends are gradually replacing wages to provide regular income for everyone, as work becomes scarcer as a result of automation?
Imagine a world where every young person not only has a small inheritance with which to start their adult life, but also the opportunity to build its value by learning life skills?
Simon Rose is taking a well-earned break this week, so we’re taking the opportunity to bring you a talk given Gavin Oldham in August to the leading City of London think-tank Z/Yen.
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