Although low inflation is likely to be the story over the next couple of years, the huge amount of policy stimulus could push up inflation further ahead. Central banks, in theory, have the tools to nip any rise in the bud. So the bigger risk is if there is an institutional slide towards accepting, or even welcoming, higher inflation. Among the major developed countries, these risks seem greatest in the US and perhaps the UK.
This Focus forms part of a series exploring how the coronavirus pandemic will change the global economy. You can find other publications in this series here.

Read the publication Will inflation make a comeback? on the Capital Economics Website.

For more info about this post:

View Source

close

Get notified when there is a new post. Read new post to earn 10 points!

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Leave a Reply

Your email address will not be published. Required fields are marked *