Fiscal policy has been front-and-center in the fight against Covid-19.
Some degree of inflation would help governments meet the cost of their massive bailouts, Robert Skidelsky said.
He said policy makers in Washington would struggle to contain large shocks.
The new law will allow foreign retirees over the age of 55 to apply for longer residency visas.
The ambitious plan includes a bridge spanning the Red Sea, connecting the proposed city to Egypt and the rest of Africa.
The move is partly a reaction to intense criticism over its treatment of foreigner workers.
Saudi Arabia wants to turn hundreds of kilometers of its Red Sea coastline into a global tourism.
Nothing sharpens the mind of Davos delegates more than the prospect of striking big deals.
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