Will slower prices lead to growth or stasis by resolving the inflation tango? Can econ­omies breathe easy with tamer infla­tion? Can the central banks navi­gate inflation’s narrow channel by finding the sweet spot? Will we escape the icebox and in the quest for stable pric­es without stalling growth? And finally, can policymakers avoid both feast and famine and steer the national economic ships to inflations balancing acts? These are some very potent questions of our cur­rent times, which nations at large are grappling with. Our homeland, Paki­stan finds it’s self in the midst of all this and many more. I am going to take this journey with you my readers sharing some useful insights from the global front using valuable data.

Inflation is predicted to reduce from 2023 and more importantly, 2022 re­sulting in lower interest rates. Lower inflation does not mean prices to low­er instead increase at a lower rate. This may have effect on consumption and firms’ investments. Imagine the econ­omy as a seesaw, with consumption on one side and firms’ investments on the other. When people spend more, de­mand rises, pushing the seesaw up and potentially tipping towards inflation. On the other hand, increased invest­ment in factories and technology aims to build a sturdier seesaw, boosting fu­ture production and eventually pull­ing prices down. The trick for keep­ing things balanced? Finding the sweet spot where spending fuels enough de­mand to keep businesses thriving, while investment lays the groundwork for cheaper production in the long run. If either side gets too heavy, the see­saw tilts – too much spending creates inflationary pressure, while neglecting investment can bring the whole thing crashing down. So, keeping a watch­ful eye on both consumption and in­vestment is like having a level on the seesaw, ensuring the economy glides smoothly towards stable prices and lasting growth.

As economics is not a natural science instead, we try and understand why people do what they do, why firms do what they do, and finally why countries do what they do. There is lot of uncer­tainty around that because of the glob­al factors that could push it in the oth­er direction for example, the attack on Houthis in western Asia, the USA and China trade tango, Ukraine war. These can be further elements of chaos be­cause of the disruption to supply chains in terms of transportation from Asia to Europe and elsewhere. If there is an escalation of a conflict in the Middle East, Ukraine, and potential conflicts between China and Taiwan then that could have a major disruption on these forecasts. Now in general most coun­tries aim for inflation to be lower, pre­dictable, and stable. While, very few of these countries aim it to be zero as the cost of inflation which goes negative of­ten disrupts consumption and firms’ in­vestments. It will take some time to get there, in some cases it will be painful while in other cases it will be disruptive but then of course not everyone gains from low inflation. If you have high sav­ings your interest rates on those saving is going to be lower.

From a technological standpoint, forecasting appears more comforting because the most likely outcome for big tech is the return of Tesla and the excitement around Chinese automak­er BYD, which has surpassed Tesla in terms of volume and market share of cars shipped. Even still, many experts quickly dismiss Tesla and its very con­tentious CEO, Elon Musk. However, it appears that Elon isn’t scared to en­gage in a pricing battle; as seen by the fact that BYD’s best-selling vehicle is priced between $15,000 and $25,000 in the US, where it has earned the greatest market share, and the Model Y costs roughly $35,000. Elon will there­fore take into consideration closing the price disparity. The construction of a Tesla has undergone substantial ad­vances, particularly in the undercar­riage area. The bottom half of the car is normally made up of over 400 compo­nents, but Tesla is reportedly using 3D printing to produce this one piece, sav­ing a substantial amount of money and time. Additionally, this will make it pos­sible to create the less expensive Tesla model. Again, this might occur in 2024, but given the highly anticipated poten­tial of the Model 2, it is most likely to occur by 2025, providing the Chinese automaker with fierce price competi­tion. I would hence anticipate Tesla to continue lowering the price of its var­ious models in order to maintain its market share and supremacy.

While the traditional carmakers still waltz to the same rusty tune, Tes­la, the electric renegade, is throw­ing an electrifying party with its Mod­el 2. This budget-friendly banger is like a catchy pop song everyone can groove to. But it’s not just about cheap thrills - Elon Musk, the tech magician behind the wheel, is pulling futuris­tic rabbits out of his hat. 3D printing, the sci-fi secret weapon, is streamlin­ing production and making cars faster and cheaper. This electric tango is not just shaking up the dance floor, it’s re­writing the entire music score. The old guard better brush up on their moves, or risk fading into the background like a forgotten cassette tape. Therefore, it would not be wise to bet against Elon despite his contentious style as a lead­er and investor because he has a track record of innovating and going above and beyond typical market behaviour.

Thus, he will undoubtedly return the party to BYD. The current automak­ers seem to think that the Germans and Japanese will keep making mis­takes. The product gap will keep wid­ening since Tesla has a track record of ground-breaking innovation and rap­id advancement. Furthermore, these tow makers are reaping the benefits of certain network effects. For instance, Tesla is in a powerful position since major American automakers like Ford rely heavily on its network of electric charging stations. Because they are only playing catch-up, the incumbent automakers always have a significant likelihood of failing when they start to follow the market leader. More im­portantly, Tesla has been a data-driven company for the past five to six years. From each car it has sold, it has de­veloped an enormous number of sen­sors, cameras, and other data-flowing points that have put it far ahead of the competition and unmatched, particu­larly in terms of its abilities for self-driving, which is heavily dependent on the correct quantity and variability of training data, making it an AI com­pany as well.

From United States vibrant Holly­wood chorus to Taiwan’s poignant op­era, half the world is taking centre stage in this year’s democratic specta­cle. Voters hold the conductor’s baton, their choices shaping the melody of our future. Will they choose the harmoni­ous symphony of cooperation, with trade humming like a well-oiled or­chestra? Or will the discordant chords of nationalism drown it out, turning trade into a cacophony of clashing cym­bals and trade barriers? Talent, once a free-flowing melody, could be silenced by restrictive visa walls, locking out the world’s most talented musicians. And even climate change, the opera’s for­gotten aria, risks fading into oblivion if the political spotlight shines too bright­ly on other issues. But wait, there’s a twist! Voters have the power to rewrite the script, to orchestrate a future where cooperation finds its rhythm, where in­novation dances with affordability, and where the curtain rises on a world that works for everyone.

So, what does it all mean? The world’s a stage, and these three acts are just a glimpse of the larger drama. Inflation’s slowing down, but it’s a tightrope walk, not a victory lap. Tesla’s electric revolu­tion is shaking up the auto industry, but will it lead to a sustainable future? And the upcoming elections hold the pow­er to shape the global symphony, but will we hear the harmony of coopera­tion or the discord of nationalism? It’s a time for careful steps, bold choices, and a whole lot of hope. So, grab your pop­corn, my dear countrymen, and let’s see how this show unfolds!

Mus’haf Khan
The writer is a Fintech-DFS advocate, Policy Enabler & former Advisor of the Government of Punjab.