Matolcsy: Inflation will be back, like in the 1970ys

English2020. ápr 29.GOVERNOR MATOLCSY100WORDS

Karen Ward is really brave enough forecasting a black swan event for next year: inflationary forces will be back /FT, Market Insight 17 April 2020/.

However, I completely agree with her, inflation will be back like in the beginning of the 1970ys. At that time, it happened due to the decisions of the Nixon administration, now it will happen thanks to the expected/unexpected decisions of the new Trump administration.

By next year no one will need low oil prices anymore. Besides, nobody can withdraw all easing measures of governments and central banks because the threat of the virus returning will be with us.

Re “Crisis will awaken inflationary forces within a year”

Governor Matolcsy, MNB, the Central Bank of Hungary

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