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COP26: Time to walk the walk

COP26: Time to walk the walk
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Why governments should keep spending, and stop worrying about inflation | Leah Downey

Many believe it’s actually the expectation of inflation that causes prices to rise ‘The prevailing narrative is that inflation is the product of overly “ambitious government spending”. Rishi Sunak has expressed these fears.’ Photograph: Reuters ‘The prevailing narrative is that inflation is the product of overly “ambitious government spending”. Rishi Sunak has expressed these fears.’ Photograph: Reuters Thu 3 Jun 2021 03.00 EDT Last modified on Thu 3 Jun 2021 05.18 EDT People have been freaking out about inflation. Recent numbers from the UK and the US seem to have confirmed their fears. Prices are clearly rising. Anyone trying to build a house or do up their garden for the summer can attest to that. The question is, are they rising because of lockdowns, Brexit and the big, marooned ship or are they rising because, on both sides of the Atlantic, we’ve over-egged our fiscal response to the pandemic?

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