The Inflation Crisis Is Not Over | by Mario I. Blejer & Piroska Nagy Mohácsi - Project Syndicate
The Inflation Crisis Is Not Over | by Mario I. Blejer & Piroska Nagy Mohácsi - Project Syndicate
Mario I. Blejer & Piroska Nagy Mohácsi explain why a year of monetary tightening has not solved the underlying causes of macroeconomic uncertainty.
You're viewing a single thread.
Inflation in the US and the world is declining, but major economies continue to struggle with imbalances and moral hazard.
• Emerging markets are successfully fighting inflation, but the global economy has not yet broken the impasse.
• Ignoring the historical context of economic development leads to political mistakes.
• The historical context of economic development is the key to political mistakes.
• Post-GFC financial reforms encourage regulatory arbitrage and increase the share of financial assets held by lightly regulated nonbank financial institutions.
• Central banks missed the opportunity to embark on serious quantitative tightening after the GFC.
• Growing government involvement in the economy raises expectations for additional public support and financial assistance.
• Measures to resolve the crisis could lead to increased concentration in the financial sector and elsewhere.