Global inflationary pressures ease as economy tightens post-recession, deflation fears diminish.
The article explores the possibility of inflation happening soon due to the long recovery period after the Great Recession and low unemployment rates. By using inflation expectations at the household or firm level, the researchers found that inflation can be predicted in various countries. The gap between actual inflation and expected inflation has been decreasing, indicating tighter economic conditions. However, there is no evidence that inflation is about to rise, as deflationary pressures have lessened since the Great Recession.