I perfectly agree with Bob Prince and Bridgewater Associates /Eric Platt, 6/22/2021/ that the “Great Inflation” of the 1970s will not return in the 2020s.
Indeed, long-running deflationary forces will eventually curtail recent price rises.
Asia beyond China is also on the rise, meaning that new waves of cheap labor are joining the global economy. Digital transition continues to lower costs across the board. New technological breakthroughs would contribute to new gains in productivity.
However, other elements of the 1970s might return.
Not “Great Inflation” but new types of rivalries and hostilities might pose the real threats for all of us.
Governor Matolcsy, MNB, the Central Bank of Hungary
Re “Bridgewater’s Prince rejects return of the 1970s ‘Great Inflation’”