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The Long Covid Economy: Will the pandemic permanently change our society and investments?
Many Happy Returns
The Scarring Effect in the Housing Market
The energy spike initially, that's what created inflation. The OBR in the UK is assuming a scarring effect of around 3% in their central forecast. That was a shortfall of potential output relative to the pre-pandemic trajectory at the five year forecast horizon. And they simultaneously have a tight labor market because what we have seen is scarring.
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