Some of the events we have seen during this crisis are so unlikely that we need tricks to calculate their probabilities. This is a journey into the world of very small probabilities and very large numbers. I admit it is somewhat surreal. But it is important as these small-probability events can have long-lasting effects on economic activity.| Rangvid’s Blog
Why is inflation so high? How much of it is due to demand and how much to supply? And how much is temporary and how much persistent? These are arguably some of the most important economic questions these days. In this analysis, I present my views. I argue there are four main reasons why inflation is high, some of them transitory but others not, meaning it will be costly and take time to bring inflation back to target.| Rangvid’s Blog