Is High Inflation Followed by Demands for Sound Money? Usually Not.

The severe losses for the center-right parties in the mid-summer French and British general elections, (i.e., Macron’s center-right coalition partners and Britain’s Tories) together with a shift in the US toward MAGA within the Republican Party, pose a severe and possibly existential challenge to the ideal of sound money. This is despite surveys revealing strong and broad popular anger about the cumulative loss of purchasing power of their money during the pandemic and its aftermath. 

Dwight R. Lee

Dwight Lee is an emeritus professor of economics at the University of Georgia.