Economist warns next 30 years will be harder than the 1950-2020 golden era
Economist Charles Goodhart warns the next 30 to 40 years will be very difficult as post-war conditions end.
Charles Goodhart is an emeritus professor at the London School of Economics. He was also a former Bank of England official.
He says the post-World War II era was unusually good for growth and living standards. That golden period is now ending, Goodhart warned recently on a podcast.
From 1950 to 2020, Western countries benefited from falling interest rates and globalisation that made policy easier. Goodhart points to manufacturing moving offshore and the shift to service-based economies.
These were part of what fuelled that boom. Central banks were aligned with government goals.
This made policy simpler than it will be ahead. Goodhart, who turns 90 next month, is known for Goodhart's Law.
This law says that statistical relationships collapse once governments try to target them for policy. He describes himself as a pessimist.
That way you're either right or pleasantly surprised.
- 30 to 40 years
- Difficult period ahead
- 1950 to 2020
- Golden era
- turns 90 next month
- Goodhart's age
Why it mattersEconomic trends are making life harder for workers. Goodhart says people should prepare for an increasingly difficult future.
AustraliaAustralia faced similar inflation-targeting policies from the 1990s onwards and benefited from the same globalisation wave. Goodhart's warning about harder times ahead applies directly to Australian workers and families.
✓ Claims checked against the source and corrected before publish. checked 9 d ago
