The $13trn question: Have we entered The Great Inflation 2.0?

History in danger of repeating itself

'The Great Inflation' is a momentous period in US economic history that lasted for 17 years between 1965 and 1982. During this time, the world's largest economy experienced high levels of inflation that even went into double digits.

History books tend to attribute the blame to the US Federal Reserve that was complacent about potential increases in inflation and instead, was too fixated on tackling unemployment. The painful memories of the 1930s and the Second World War had a role to play in this. We live in a undoutedbly different world today, but certain parallels can still be drawn. The Fed's current stance is that inflation is likely to be transitory. The central bank is therefore in no real rush in pulling back its unprecedented monetary accommodation which it introduced during the Covid crisis. Roundtable di...