The American economy, while never simple, was at least somewhat understood — until the pandemic upended even the most basic assumptions, experts told The Hill this week. From the recession that didn’t happen, to the relationship between unemployment and inflation, to the reason that inflation took off in the first place, to the disconnect between…
Rishi Sunak will meet his inflation target after all, or so the Bank of England now believes. The Prime Minister will be hoping that, for once, the Bank is actually right. It has spent the past few years betting the future of the economy on forecasts that later turned out to be incorrect, at some cost to its credibility. The public has been left with the bill in the form of higher inflation and a greater interest rate risk premium than many other large economies.