Matolcsy: It is wartime economics, but another kind
In principle, both Lord Keynes and Lord Skidelsky are right: in a wartime economy and in times of supply lockdowns inflationary forces will be at large.
But it is another kind of war than WW2 and most likely a V-shape crisis. It means that the previous deflationary path of the developed world will be back soon, as Gavyn Davies put it rightly /FT. 27 April 2020/.
However, against all odds, inflation might be back next year, more likely in 2022, because we live in the time of the new 30 Years' War. Wartime economics plays its part again in favor of higher inflation.
No one promised peaceful times when our relatives are the 1940s and the 1970s.
Governor Matolcsy, MNB, the Central Bank of Hungary