Kevin Daly and Rositsa D. Chankova in this voxeu article: The economic consequences of Covid-19 are often compared to a war, prompting fears of rising inflation and high bond yields. However, historically, pandemics and wars have had diverging effects. This column uses data extending to the 1300s to compare inflation and government bond yield behaviour in the aftermath of the world’s 12 largest wars and pandemics. It shows that both inflation and bond yields typically rise in wartime but remain relatively stable during pandemics. Although every such event is unique, history suggests high inflation and bond yields are not a natural consequence of pandemics. This entry was posted on April 15, 2021 at 5:48 pm and is filed under
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Kevin Daly and Rositsa D. Chankova in this voxeu article: