IL18: We Need to Talk About Inflation ft. Stephen King

Published: July 12, 2023, 1 p.m.

HSBC Senior Economic Adviser Stephen King joins the show to discuss the most important long-term issue facing western economies: inflation. Stephen\u2019s new book - We Need To Talk About Inflation - is an FT \u201cbook to read in 2023\u201d for good reasons. He explains why inflation is not just about money creation, it also depends on public perceptions and the fatal temptation of governments to usurp central bank independence (what he calls the Richard Burton - Elizabeth Taylor rule). Stephen explains how to evaluate future inflation risks through his \u201c4 Inflationary Tests\u201d and we talk through how the US and Europe currently measure up.

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Episode TimeStamps:

02:05 - Introduction to Stephen King and his book

09:00 - The relationship between public behaviour and the supply of money

13:21 - Can it be deflationary?

17:12 - The Taylor Burton effect

30:29 - The unfairness of inflation

37:46 - Has the impact of inflation become worse over time?

46:26 - Institutional changes and inflation...