Featured Post from Cedarville University

With an economy on life support – is inflation inevitable?

Jun 22, 2020

2 min

Jeff Haymond, Ph.D.


As countries around the globe are flooding their respective economies with enough cash to hold back the financial tsunami that could be felt by COVID-19 … will all that cash inevitably come with an unfortunate consequence like inflation?

Those who work the markets and do their best to see into the future … think so.

 

With the world economy forecast to shrink 6% this year, it may seem like a strange time to fret about inflation.


And sure enough, market-based gauges suggest an uptrend in prices may not trouble investors for years. U.S. and euro zone inflation gauges indicate that annual price growth will be running at barely over 1% even a decade from now.

So if inflation really is, as the IMF put it in 2013, “the dog that didn’t bark”, failing to respond to all the central bank money-printing unleashed in the wake of the 2008-9 crisis, why should investors prepare for it now, especially as demographics and technology are also conspiring to tamp down inflation across the developed world?


The answer is that some think the dog really will bark this time, partly because - unlike in the post-2008 years - governments around the world have also been rolling out massive spending packages, in a bid to limit the impact of the coronavirus pandemic.


“We will be pushing, pushing, pushing on the string and dropping our guard, then 3-5 years from now...that’s when the (inflation) dog will start barking,” said PineBridge Investments’ head of multi-asset Mike Kelly, who has been buying gold on that view.


“Gold worries about such things long in advance. It has risen through this coronavirus with that down-the-road-risk top of mind,” he added. June 22 - Reuters

 



It’s a daunting and stressful scenario.


  • How much inflation could America expect and what would it mean to household incomes and spending?
  • What industries would be further devastated by this?
  • Is there any way to reverse inflation or is there an upside to it for some?

 

If you are a reporter covering this topic – then let our experts help.


Jeff Haymond, Ph.D. is Dean, School of Business Administration and a Professor of Economics at Cedarville and is an expert in finance and trade. Dr. Haymond is available to speak with media regarding this topic – simply click on his icon to arrange an interview.

Connect with:
Jeff Haymond, Ph.D.

Jeff Haymond, Ph.D.

Dean, School of Business Administration/Associate Professor

Research interests include economics and religion, as well as monetary theory

Financial Markets (General)Federal Trade Reserve PolicyFree TradeMinimum Wage / UnemploymentGovernment Regulation

You might also like...

Check out some other posts from Cedarville University

1 min

Supreme Court Takes Action on Transgender Law

On June 18, 2025, the Supreme Court ruled 6-3 that Tennessee could ban gender-affirming care for transgender minors. This decision is expected to not only affect those in Tennessee but those across America.  This is not the first time the Supreme Court has upheld anti-transgender laws. President Trump requested that transgender individuals be removed from the military, which the Supreme Court granted on May 6, 2025.  This ruling has gotten mixed reactions to those rejoicing and others enraged. Bill Lee, Tennessee governor, reminds others that, "Protecting children is a fundamental responsibility that we take seriously...this [bipartisan legislation] lawfully safeguards young people from irreversible, life-altering medical decisions."  Time will tell how this decision made by the Supreme Court will affect other similar cases that will appear before them.  Dr. Mark Caleb Smith is the Director of the Center for Political Studies at Cedarville University. Mark is available to speak with the media regarding the Supreme Court and their decision. Simply click on his icon or email mweinstein@cedarville.edu to arrange an interview. 

1 min

America Sees Another Surge in Political Violence

America has seen its share of political violence, the worst being the Civil War. But unrest is stirring once again in the hearts of Americans as her citizens are being divided by President Trump's deportation of illegal immigrants. Some see it as a solution to cut back violence and drugs in America, while others see it as a cruel, heartless act.  Protests are rising up across America as those who oppose the deportation are showing their dislike. People in Ohio, Florida, Alaska and other states are participating in anti-ICE protests. Texas and California have been the most vocal about it, with LA featured on the news many times.  As unlawful assembly escalated in LA, looted buildings, cars set on fire and blocked roads, President Trump sent 700 US Marines. This only frustrated state officials more who claimed they had it under control. While 338 arrests have occurred, there have been no reported deaths linked to the protests.  This is not the first time LA, California, has seen political violence though, as they have dealt with Watts Riots in 1965, the 1992 Los Angeles riots and in 1997 the North Hollywood shootout.  Dr. Stanely Schwartz is an expert on history and is available to speak to media regarding the protests and political violence throughout history – simply email mweinstein@cedarville.edu or text or call (937) 532-6885 to arrange an interview.

1 min

Farewell to the Penny

Since its creation in 1792, the penny has had a notable role in American currency. But 2026, will mark the end of the one cent after 233 years.  In June of 2025, the U.S. Treasury made its final order for penny blanks. The U.S. Mint stated that it's lost $85.3 million on the 3.2 billion pennies they produced in the 2024 fiscal year. It is estimated that the government will save $56 million annually once the production of the penny stops.  The penny was one of the first coins produced by the U.S. Mint in 1792 and was originally designed by Benjamin Franklin. Since then, the penny has been used to mark significant events in American history as its design has changed over the years. The penny, starting in 1857, has been the smallest form of currency used in America.  Now the nickel will become the smallest coin to be used in cash purchases. With this change it is expected that getting your exact change will become difficult, causing businesses to either round up or round down to the nearest five cents.  Dr. Jared Pincin is an expert on economics and is available to speak to media regarding penny production and the economy – simply click on his icon or email mweinstein@cedarville.edu to arrange an interview.

View all posts
Powered by