THE RETURN OF INFLATION: A BANKER’S PERSPECTIVE AMZALLAG 2022RB-01 BURGUNDY REPORT

The wise course of action to avoid a chaotic future requires that the US authorities withdraw from hands-on policies and instead, pave the way for the agile private sector to take the lead and adapt the economy to the changing conditions. [...] The magnitude of the correct the cost differential between the US and other economies, especially China, Mexico excesses of the and Vietnam, led to large savings in labour costs. [...] We gauge public finances and the capacity of public spending to counter the economic consequences of the event and evaluate the government’s commitment to keep inflation under control, particularly through wise public spending in areas that grow the economy the most. [...] In both cases, the Treasury and Federal Reserve resorted to exceptional financial measures to give the government the means to win the battle and salvage the economy. [...] the last 40 years One thing remains, however: the wise course of action to avoid a chaotic future has created requires that the US authorities withdraw from hands-on policies and instead, pave the way for the agile private sector to take the lead and adapt the economy to the changing conditions as it did so successfully after WWII.