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Inflation Dynamics: Dead, Dormant, or Determined Abroad?
Report

Inflation Dynamics: Dead, Dormant, or Determined Abroad?


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Editorial Rating

7

Qualities

  • Analytical
  • For Experts

Recommendation

Inflation’s quiescence around the world remains an economic conundrum. In this scholarly report, economist Kristin J. Forbes looks at how inflation dynamics have changed since the 2008 financial crisis and details why standard inflation models have been missing the target. She points to globalization as the missing link. Although its subject can be daunting to nonexperts, this study clearly explains a topic that is gaining more attention among economists, executives and analysts.

Take-Aways

  • Inflation models have become less reliable.
  • Taking global factors into account may help economists better understand and forecast inflation.
  • Globalization matters, but local aspects remain relevant.

About the Author

Kristin J. Forbes is a professor of economics at the MIT Sloan School of Management.


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    J. P. 3 years ago
    Is there a working model for this? It would be nice to see a back test to determine current reads on inflation as well as potential impacts for determining forward outcomes.