The fine-tuned management of surging inflation that is currently being attempted is an area where economics is at its weakest. Better global coordination of monetary policy is essential – and, as the world’s largest economy, the United States will need to assume a disproportionate amount of responsibility for this effort.
ITHACA – Inflation has suddenly become a major problem in virtually all countries. What is unusual this time around is that advanced economies are at the forefront, with annual consumer price inflation currently 8.5% in the United States, 7.5% in the eurozone, and 7% in the United Kingdom. Among emerging markets and developing countries, traditionally more resilient Asian economies also are recording high inflation, with price growth in India, Bangladesh, and South Korea reaching 7%, 6.2%, and 4.1%, respectively, in March.
ITHACA – Inflation has suddenly become a major problem in virtually all countries. What is unusual this time around is that advanced economies are at the forefront, with annual consumer price inflation currently 8.5% in the United States, 7.5% in the eurozone, and 7% in the United Kingdom. Among emerging markets and developing countries, traditionally more resilient Asian economies also are recording high inflation, with price growth in India, Bangladesh, and South Korea reaching 7%, 6.2%, and 4.1%, respectively, in March.