• 1,050 days Will The ECB Continue To Hike Rates?
  • 1,051 days Forbes: Aramco Remains Largest Company In The Middle East
  • 1,052 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,452 days Could Crypto Overtake Traditional Investment?
  • 1,457 days Americans Still Quitting Jobs At Record Pace
  • 1,459 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,462 days Is The Dollar Too Strong?
  • 1,462 days Big Tech Disappoints Investors on Earnings Calls
  • 1,463 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,465 days China Is Quietly Trying To Distance Itself From Russia
  • 1,465 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,469 days Crypto Investors Won Big In 2021
  • 1,469 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,470 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,472 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,473 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,476 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,477 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,477 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,479 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Inflate Your Way to Victory

In keeping with the topic of the month, I present this chart.

World Cup Inflation

I really wanted to make the x-axis the compounded inflation rate since the World Cup began, but the data is just too difficult to find for many of these countries. Nevertheless, we see the broad outlines of the thesis in this chart. If you want to be excellent at soccer, inflate your economy.

The correlation between soccer wins and inflation (I arbitrarily decided to only include countries which have appeared in eight or more World Cups, so that there is some chance that they have some wins) is only 0.31, but notice the two blue dots at the upper left. I would argue that at least Germany has an inflation-driven history, although since the 1980s they have had fairly low inflation. One might argue the same with Italy, albeit to a lesser extent. If we exclude those two aberrations, the correlation rises to a whopping 0.67!

Ok, sure, this is somewhat spurious - it is largely driven by the fact that two of the winningest teams are Brazil and Argentina, which have quite a history of inflation as well as of soccer. But if the ECB discovers this, it should make sure all of the retail shops in Europe know...and they'll have widespread support for inflation.

 

Back to homepage

Leave a comment

Leave a comment