To understand the increase in consumer price inflation around the world, one must look not only at supply and demand but also at the wedge that the coronavirus introduced between them. And now Russia’s war on Ukraine has added another source of inflationary pressure.
NEW HAVEN – Until a few years ago, major economies were struggling to achieve even mild inflation, with policymakers in the United States, the United Kingdom, and the eurozone struggling to meet their targets of 2% annual price growth. But with the arrival and persistence of COVID-19, the world changed dramatically. Two years later, everyone is worried about soaring inflation and how it can be contained.
NEW HAVEN – Until a few years ago, major economies were struggling to achieve even mild inflation, with policymakers in the United States, the United Kingdom, and the eurozone struggling to meet their targets of 2% annual price growth. But with the arrival and persistence of COVID-19, the world changed dramatically. Two years later, everyone is worried about soaring inflation and how it can be contained.