Brunetti View 1 – 2023

The first Brunetti View of the new year is here. Our macroe­co­nomic advisor Prof. Dr. Aymo Brunetti now expects a more infla­tion-friendly environ­ment in the longer term. In this report we want to explain that we can hardly expect a rapid return to a phase of low infla­tion or even to the (exagge­rated) fears of defla­tion that charac­te­rised the decade before the pandemic, even after a successful fight against the current infla­tion. A number of struc­tural changes in the world economy suggest that the new normal is more likely to resemble the 1970s or 1980s charac­te­rised by infla­tio­nary pressures instead of the recent past. Read the full report here: