Unchartered Waters: When Economic Policy Solutions Become the Problem

William White made a webinar presentation to the Global Risk Institute in Toronto on 3 March 2022. He described how the longer rum implications of policies, above all monetary policy, intended to mitigate shorter run problems¬† in the economy could cause even worse problems over time. This reality is attested to by numerous signs of stress in the current economic and financial system which could now easily spread over to other systems (political, environmental and public health) as well. White listed seven reasons for expecting a stagflationary future, with equally plausible arguments for subsequent high inflation or a debt-deflation. He raised the possibility that highly indebted governments, given such difficult circumstances, might turn to “financial repression” as the easiest way out.