Right now inflation remains well contained and not a single central bank worries about the negative impact of inflation on the economy. We can all agree that monetary policy is very accommodative right now and will remain so for at least a few more years.
Are you concerned that inflation will bite the global economy rather hard and when least expected?
Inflation may be hard to generate for some countries (like Japan), but once it takes place it tends to increase rather fast while reducing inflation is a hard task and the only thing central banks can really do is increase interest rates and hope for the best. A hike in interest rates during stagnant economic growth or stagflation is every economies worst nightmare.
I start to wonder about inflation and think it may come lurking around the corner sooner than any economy can handle.
Are you concerned that inflation will bite the global economy rather hard and when least expected?
Inflation may be hard to generate for some countries (like Japan), but once it takes place it tends to increase rather fast while reducing inflation is a hard task and the only thing central banks can really do is increase interest rates and hope for the best. A hike in interest rates during stagnant economic growth or stagflation is every economies worst nightmare.
I start to wonder about inflation and think it may come lurking around the corner sooner than any economy can handle.