Demography and globalisation: reversing trends

The Sound of Economics

In this episode of The Sound of Economics, we invite Charles Goodhart and Manoj Pradhan to talk about their most recent book: 'The Great Demographic Reversal’. They argue that trends in demography and globalisation, especially the stunning rise of China combining both, have greatly weakened labour bargaining power and led to subsequent disinflation, inequality and falling interest rates. But just as these demographic and globalisation trends are now reversing, labour bargaining power will rise again, bringing with it more inflation, less inequality and rising interest rates. The coronavirus pandemic will only accelerate this reversal.
Bruegel scholars Maria Demertzis and Guntram Wolff join the authors for a conversation on ageing societies, waning inequality, as well as an inflation revival.