Tim Congdon restates and uses the quantity theory of money to explain why inflation reached a 40-year high after Covid-19. While most economists expected prices to fall, Congdon correctly forecast that the resulting expansionary measures would cause an inflation flare-up.

Tim Congdon is an economist and businessman. For almost 50 years, he has been a consistent advocate of free markets and sound money in the UK policy debate. One of his themes is that banking and money growth have powerful influences on macroeconomic outcomes. He is currently chair of the Institute of International Monetary Research, which he founded in 2014. The Institute is based at the University of Buckingham, where he is a professor of economics. He was a member of the Treasury Panel of Independent Forecasters (the so-called 'wise persons') between 1992 and 1997, which advised the Chancellor of the Exchequer in a successful period for UK economic policy. He has been an advocate of money targeting to control inflation (and deflation) since his first job as an economic journalist on The Times between 1973 and 1976. He worked in the City of London from 1976 to 2005, where he explained the implications of macroeconomic trends for securities prices and asset allocation. He set up the influential consultancy, Lombard Street Research (now TS Lombard), in 1989.