A cynical explanation for unprecedented cranking up of interest rates over the past two years has been the perceived need to reduce the ‘Covid cushion’ - the savings that many of us had accumulated over the lockdown period when governments worldwide were effectively paying us not to go to work - and in so doing increase the motivation for us to apply for jobs. IMF World Economic Outlook for April 2024 gives us an overview as to where we’re at with this immiseration strategy.
