Global Economy at Risk: Ultra-Low Inflation Threatens Stability and Growth
Global inflation rates have been unusually low since the Great Recession. Factors like changes in how prices and wages are set, less sensitivity of inflation to economic conditions, and global influences may be to blame. Studies show that different countries have experienced varying levels of inflation, with some struggling to explain the low rates. This prolonged low inflation could harm the economy and make it harder for central banks to control inflation expectations. Policymakers need to consider options to address this issue.