Virus may kickstart a new era of global inflation

The first is the way in which governments have belatedly swung behind exhausted central banks in a massive co-ordinated support scheme for economies looking into the abyss of another depression. 

The absence of active fiscal policy after the financial crisis was a key reason we ended up trapped in a low-growth, low-inflation doom loop for the past 12 years.

The scale of the fiscal support packages already unveiled – and there will be many more – is staggering. At 14pc of GDP in the world’s four biggest economies, up from 3pc last year, the stimulus is already 1.6 times that

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