The post-pandemic surge of inflation must be analyzed in its global context, with insights drawn from the notable correlations between countries - and especially between advanced economies. Only then can one properly judge major central banks' performance in managing the situation and pursuing their mandates.
NEW YORK – Persistent surges in core price inflation (which excludes food and energy), and the resulting overshoot of central-bank inflation targets, have been a distinctive and distressing feature of the post-pandemic global economic landscape. When confronted with such an economically significant phenomenon, those of us who pay attention to the relevant international evidence will look for common factors to account for the observed correlation between countries. I can think of at least three.
NEW YORK – Persistent surges in core price inflation (which excludes food and energy), and the resulting overshoot of central-bank inflation targets, have been a distinctive and distressing feature of the post-pandemic global economic landscape. When confronted with such an economically significant phenomenon, those of us who pay attention to the relevant international evidence will look for common factors to account for the observed correlation between countries. I can think of at least three.