Inflationary psychology could make things worse, but for now it's in check

Written by The Conversation

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With the world is experiencing inflation levels not seen since the 1980s, central banks are caught between warning of the dangers of an 1970s-style inflationary spiral, and contributing to that spiral by talking about it.

It’s a problem in any part of the economy where expectations shape outcomes.

On one hand, central banks...

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