Center for European Studies

Joint Research Center - European Commission

The Rimini Center for Economic Analysis - Europe

 

Rethinking Capitalism (ReCap) Webinar Series

 

The Great Demographic Reversal: Ageing Societies, Waning Inequality, and an Inflation Revival 

 

 

#ReCapWebinarSeries: by Charles Goodhart (London School of Economics) and Manoj Pradhan (Talking Heads Macroeconomics)
Date & Location

Tuesday 18 January 2022, 5pm (CET)

Virtual Meeting (Zoom)

Speakers

Charles Goodhart (London School of Economics)

Manoj Pradhan (Talking Heads Macroeconomics)

The underlying forces of demography and globalization will shortly reverse three multi-decade global trends; they will raise inflation and interest rates, but lead to a pullback in inequality. Whatever the future holds, it will be nothing like the past. Deflationary headwinds over the last three decades have been primarily due to an enormous surge in the worlds available labor supply, owing to very favorable demographic trends and the entry of China and Eastern Europe into the worlds trading system. This demographic trends are on the point of reversing sharply, coinciding with a retreat from globalization. As the result, ageing can be expected to raise inflation and interest rates, bringing a slew of problems for an over-indebted world economy. Ageing is also anticipated to increase the share of labor, so that inequality will fall.