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  • Analytický komentár

How to avoid inflation in the long run

  • Gertler Pavel
    vedúci oddelenia makroekonomického výskumu
11 jan 2022
Inflationary pressures in the developed economies have gained strength. Most central banks assert that current inflation is exclusively driven by short run factors and will securely return below the policy target in the medium term. However, if such reversal takes too long, the anchoring of inflation expectations could be compromised by secondary effects from the labour market. In the medium to long run, other inflationary sources may also arise from structural changes resulting from ageing, global decline of the labour force, disruptive effects of green transformation or from excessive debt and inefficient effort of fiscal consolidation. Eventually, resorting to well communicated and coordinated commitment of fiscal and monetary policy might be the best solution.