Why inflation may buck the forecasts and make a comeback

Current forecasts by many banks, central banks and other institutions suggest that inflation will not be a problem in the foreseeable future. The International Monetary Fund, for example, expects global inflation to remain subdued until the end of its forecast horizon in 2025. But could those who heed these forecasts be in for a rude awakening?Economic models have long been notoriously inaccurate in predicting inflation, and Covid-19 has further complicated the challenge. While economic…

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