The world enters a new era: Bail-outs for everyone!
How governments came to underwrite the entire economy
The winter of 1973-74 was grim, and in similar ways to today. In response to geopolitical strife energy prices went through the roof. Across Europe the price of natural gas more than doubled, and in places there were even bigger increases in heating oil. The price of crude oil more than tripled. This fed an inflationary surge across the rich world, cutting real incomes. There was no end in sight.
This article appeared in the Finance & economics section of the print edition under the headline “Bail-outs for everyone!”
Finance & economics October 1st 2022
- Financial markets are in chaos. What next for the real economy?
- Global rate rises are happening on an unprecedented scale
- Japan’s monetary policymakers are sticking to their guns
- The world enters a new era: Bail-outs for everyone!
- Investment banks are sharpening the axe
- Economists now accept exchange-rate intervention can work
From the October 1st 2022 edition
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