Globalization Has Changed Inflation Dynamics, but Domestic Developments still Matter (Brookings, 2 min read) Finds that global factors have become more important for determining headline CPI inflation, but local factors are still important for core inflation and wages.
The Inflation Conundrum in Advanced Economies and a Way Out (BIS, working paper) Cross-country study finds that an ageing workforce, crisis scars on workers and the ‘uberisation’ of the labour market imply more slack and less inflation pressures. BIS also argues for fiscal policy rather monetary actions.
A Role for Financial and Monetary Policies in Climate Change Mitigation (IMF, 4 min read) Recommends central banks doing green QE and accepting low-carbon bonds as collateral. We’ve written about this on Macro Hive.
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