December 2012 – We’re going through one of those very rare things indeed: a paradigm shift. Having spent the past 200 years with the prices for everything declining, around 2002 this shifted, and the price of almost everything started going up. In 10 years, without much fuss, we’ve given back all the price declines of the previous 100 years. That’s quite a remarkable shift.
Jeremy Grantham is co-founder of GMO LLC, where his Quarterly Newsletter to clients has gained wide renown as a crucial source of investment advice. In this adapted version of his high-profile lecture to delegates at The Prince of Wales's Business & Sustainability Programme 2012, he describes how he came to realise that we are facing a paradigm shift, and the limits of traditional economics.
