July 07, 2020

The extraordinary events of 2020 so far has led to a significant downward revision in short-term inflation estimates across the globe. However, following unprecedented monetary and fiscal policy action, concerns have resurfaced regarding the possibility of a resulting increase in medium- to long-term inflation. These concerns are reminiscent of those raised amid monetary interventions during the global financial crisis (GFC). This paper compares inflation during the post-GFC experience with that of the COVID-19 environment, and assesses the risks of policymakers doing too much to support economic activity (which could result in higher inflation in the medium to long term).

Download "Beware of inflation" paper

Fill out your details below to receive the report in your inbox. If you do not have your pop-up blocker enabled, you will be prompted by your browser to download the white paper or view in a new window. 

*Required Fields