Next week the US Fed’s Open Market Committee will meet with inflation still below its target. And Governor of the Bank of England Mark Carney is suggesting that UK rates could rise soon. The US, UK and the global economy have been expanding modestly for at least a year. Yet inflation is still flatlining.
- So why, asks Nouriel Roubini, is inflation still flatlining?
- For Carmen Reinhart, normal times – and modest inflation – remain far off.
- Adair Turner agrees, arguing that most of the obstacles to a robust recovery are on the demand side.