Economists: Post-Covid double-digit inflation warnings wide of the mark

Fears are 'overdone', experts argue

David Brenchley
clock • 5 min read

Economists and CIOs believe fears central bank and government stimulus measures to fight the economic effects of Covid-19 will lead to an inflationary shock are overdone.

One of the defining features of the coronavirus pandemic has been the sheer scale of the policy reaction as global lockdowns shut economies for months on end and pushed many countries into recession. Fiscal stimulus measures in the US and the European Union, for example, added up to around 13% and 4% of GDP respectively as of 24 July 2020, according to Statista.com. This surge in government borrowing and growing central bank balance sheets has caused an acceleration in money supply growth, according to global head of asset allocation at Invesco Paul Jackson. US M2 growth, for insta...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Majority of UK wealth management sector eyes acquisitions this year

Majority of UK wealth management sector eyes acquisitions this year

Continued appetite and momentum in M&A space

Isabel Baxter
clock 30 June 2025 • 3 min read
How can firms improve client engagement with wealth products?

How can firms improve client engagement with wealth products?

Consumer first focus; Simplifying prodcut information

James Wood
clock 30 June 2025 • 4 min read
Verso rejects platform incentives model, says adoption must be earned

Verso rejects platform incentives model, says adoption must be earned

Nucleus-built platform rolled out across advice group with no mandated use as consolidator targets £5bn AUM

Sahar Nazir
clock 27 June 2025 • 2 min read