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Scoop.it!
From Liverpool to LA, shortages of energy, labour and transport are threatening recovery from Covid 
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Scoop.it!
If economies recover and stimulus turbocharges pent-up demand, a lot of bank credit could result from central bank money
Graham Watson's insight:
Hans Werner-Sinn takes a common theme in contemporary policy debates and wonders about the risks of inflation in Europe. I have to say I remain unconvinced. It's an interesting argument that introduces the term monetary overhang - something I haven't heard since I took a paper on Soviet economies and their marketisation (yes, I am THAT old).
However, I don't think that the prophets of doom are correct - for now. The fear of unemployment is still high among certain groups; I suspect that the pandemic will have increased precautionary saving; some will have tried to protected the real value of their wealth during the pandemic.
But is inflation going to let rip at some point? Perhaps, but with high levels of government borrowing across the world, I suspect that a few government might be wondering whether a higher inflation target, which helps reduce the real value of their debt, might not be a bad thing.
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Another article looking at the fragility of the global supply chain, the problems that it's caused and the implications of this for global policymakers, notably the implications for monetary policy, because of high levels of pent-up demand.
That and the possibility of stagflation.