Since the great financial crisis of 2008/09, the global economy has recorded relatively weak low-inflation growth. From the perspective of the central banks, price level increases have been too low rather than too high in most years. However, even with extremely low, partly negative interest rates and large-scale bond purchase programs, it was not possible to bring inflation to the level of around 2 percent that is commonly targeted. With the onset of the Corona crisis, however, the monetary policy impulses have once again been significantly strengthened. This and very expansionary debt financed fiscal programs make it likely that inflation will increase in the future.
Dr Michael Heise, HQ Trust’s Chief Economist, offers his views on current trends and statistics to answer the question, ‘Will Inflation Rise After Corona?’.
Click here to view his report in full.