AAA April 2020 – Page 6

Net zero in all but price

“US oil price below zero for first time in history,” read the headline in the Financial Times and effectively the same over at the Wall Street Journal when I woke up this morning.

Boosting inflation through adding inefficiency to the market

There are a few ways to deleverage an economy and boosting inflation to reduce the real burden of the debt is one of the less unpleasant if it is carried out alongside rising wages. This is critical if the demand shock from the coronavirus lockdown leaves that economy effectively unable to service its individual, corporate or sovereign debt piles.