Business leaders meeting this week at the World Economic Forum in Davos, Switzerland, have warned that high levels of inflation are likely to cause a global recession, or worse. Financier George Soros told the annual gathering that ongoing coronavirus lockdowns in China mean “global inflation is liable to turn into global depression”. Meanwhile the head of the World Bank, David Malpass, told a business event in the US that given the rising cost of energy, food and fertiliser prompted by Russia’s invasion of Ukraine, it’s now difficult to “see how we avoid a recession”. Government and central bank spending aimed at cushioning the economic shock of the pandemic is also being blamed for the rising cost of goods and services. So, why have authorities so far failed to get rising inflation under control? If increased spending is contributing to prices going up, what can officials do to cushion the economic impact on the poorest without making things worse? And is another recession likely and perhaps even necessary?

Ritula Shah is joined by a panel of expert guests.