But now people the world over are confronting a poisonous new economic reality and, with it, the prospect of vast and increasing wealth inequality. How have we arrived in this situation? And what, if anything, can we do about it? 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. King concluded by looking to the future. He saw two major risks - that central banks may only be able to achieve their inflation targets with a lot more heavy lifting from monetary policy (thereby risking a hard landing), or that they are so fearful of the ramifications of far tighter monetary policy (particularly if fiscal policy has run out of space) that higher inflation ends up being accommodated. And this is what the real income per capita numbers hide: large bouts of inflation create extreme winners and losers in quite undemocratic ways. Asudden bout of inflation obviously makes those on fixed incomes or stable government benefits alot worse off, while those for whom wage increases occur only infrequently see their purchasing power collapse. On the other hand, those who can borrow heavily and invest the funds in physical assets and real estate, or who have alot of pricing power over their labor, can often come out of inflationary periods sitting (relatively) pretty. These effects are often arbitrary and politically explosive. For cost savings, you can change your plan at any time online in the “Settings & Account” section. If you’d like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial.

It could raise prices and rake in more money because P&G faces almost no competition. The lion’s share of the market for diapers, to take one example, is controlled by just two companies – P&G and Kimberly-Clark – which roughly coordinate their prices and production. It was hardly a coincidence that Kimberly-Clark announced price increases similar to P&Gs at the same time P&G announced its own price increases. As clients approach agencies, they need to be flexible. It's the necessary behaviour to get great work while controlling cost. Your agency's profit is not a cost of doing business, it's the motivation for an organisation to put all their efforts into your challenge. Help them maintain margin by being flexible in how other costs are managed. The longer this volatility continues, the more we look to mitigate – with our commercial broadcast partners but also by testing access to audiences elsewhere. Clients that are econometrically modelled to a required level of TVRs have never been so willing to try something different. King continued by looking at various historical examples of inflation - from the Roman Empire, the Spanish discovery of silver in South America in the 16th century, the French Revolution to the American Civil War. His conclusions? That money matters and that there is an inseparable relationship between monetary and fiscal policy. How might monetary policymakers better assess whether inflationary pressures are likely to be more persistent in the future? King posits four “tests” that they should consider. If the answers to the questions are “yes,” then our monetary overlords should be alive to the threat of ongoing elevated inflation. The implicit critique is that, by failing to consider these questions this time, central bankers were asleep at the wheel, allowing aggregate demand to outstrip supply.Airlines have merged from 12 in 1980 to four today, which now control 80% of domestic seating capacity.

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 FINANCIAL TIMES "BOOK TO READ IN 2023" "Everything you wanted to know about inflation but were afraid to ask."-Mervyn King "King's lessons command our attention."-Lawrence H.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 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)