Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Stagflation, the combination of low economic growth and high inflation, became a buzzword by the end of that decade.Real (inflation-adjusted) short-term interest rates were consistently negative in most of the advanced economies.Disinflation is not the same as deflation.Even in historically price-stable Switzerland at that time, inflation was running above 5 percent.Indeed, inflation is widely expected to surpass the Federal Reserve's 2 percent objective.This expected turning point in the behavior of prices is not unique to the U.S. If the International Monetary Fund's projections for 2017 are approximately correct, this year will be the first in a decade that no advanced economy is experiencing deflation (figure). If 2017 really does mark a broad reversal of a decade of deflation, it is reasonable to expect that most major central banks will be not be inclined to overreact if, after a decade or so (longer for Japan) of mostly downside disappointments, inflation overshoots its target.
The curious case of the missing defaults, a cautious interpretation
The persistence of global
Economic recovery does not equate resolving the fundamental problems
FOLLOW THIS ARTICLE