EXCESSIVE monetary easing and promised US and European infrastructure spending by indebted governments could bring about a repeat of 1970s "stagflation".
This combination of economic stagnation and inflation is a worry of Alan Greenspan, former chair of the US Federal Reserve Board between 1987 and 2006. Mr Greenspan said that the decline in productivity and underperforming businesses had "provoked despair and a consequent rise in economic populism from Brexit to Trump".
"The risk of inflation is beginning to rise," he said in answer to questions from officials at the World Gold Council. Unemployment is at low levels in the US. Wages are beginning to rise and the increase in money supply...