It means a sharp rise in global energy prices Food is that nearly 60 percent of advanced economies now have year-on-year inflation above 5 percent, the highest rate since the late 1980s, while it is above 7 percent in more than half of the developing world.
Augustin Carstens, general manager of the Bank for International Settlements, the umbrella group for the world’s central banks, said Tuesday "It is a key message that we may be on the cusp of a new inflationary era."
He added: "We need to open up to the possibility that inflationary environment Fundamentally changing.. If my thesis is correct, central banks will need to adjust their policy."
Carstens cited forecasts by economists that now point to inflation above 4.5 percent in the United States and most of Europe over the next two years and above 3.5 percent in many other advanced economies.
وقال "Most likely this will require it to rise interest rates The real is above the neutral levels for some time in order to slow down the pace of demand."
Carstens urged governments to resist the temptation to try to offset the brunt of inflation or… high interest ratessaying "The key to higher sustainable growth cannot be expansionary monetary or fiscal policy."
"Many of the economic challenges we face today stem from ignoring supply-side policies for the past 10 years or more."
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It means a sharp rise in global energy prices Food is that nearly 60 percent of advanced economies now have year-on-year inflation above 5 percent, the highest rate since the late 1980s, while it is above 7 percent in more than half of the developing world.
“It’s a key message that we may be on the cusp of a new inflationary era,” Augustin Carstens, general manager of the Bank for International Settlements, the umbrella group for the world’s central banks, said Tuesday.
“We need to be open to the possibility that inflationary environment Fundamentally changing…if my thesis is correct, central banks will need to adjust their policy.”
Carstens cited forecasts by economists that now point to inflation above 4.5 percent in the United States and most of Europe over the next two years and above 3.5 percent in many other advanced economies.
“Most likely, this will require it to rise,” he said interest rates Real estate has been above neutral levels for some time in order to slow the pace of demand.”
Carstens urged governments to resist the temptation to try to offset the brunt of inflation or… high interest rates“The key to higher sustainable growth cannot be expansionary monetary or fiscal policy,” he said.
“Many of the economic challenges we face today stem from ignoring supply-side policies over the past 10 years or more.”
