“Build back better after the pandemic” - it is really a fundamentally flawed slogan. /Chris Giles, FT, 13 November 2020/
There is no way to build back the pre-pandemic economy in western countries because the foundation of the former world changed to the roots. Huge public and private debts have been accumulated in order to survive the effects of the pandemic.
Sadly, it is only the beginning of new debt piles due to the heroic future government’s fiscal programs to spend their way out of the long-lasting effects of the pandemic.
Indeed, living standards will be depressed, public finances will worsen, governments will increase taxes – hardly a virtuous circle.
Time has come to thoroughly study the hidden narratives of the 70s and 80s of the last century to find a way out of all of this. The key to the next two decades is to figure out the new mindset of people, the new spending habits, the new growth patterns and the path for the transition to green technologies.
Governor Matolcsy, MNB, the Central Bank of Hungary