Playing the inflation long game

Beyond near-term inflation concerns, policy should focus on managing price pressures from structural changes in labour markets & globalisation - and net zero

Inflation – and the inflation debate – is heating up.  Recent inflation readings in the Eurozone, the US and the UK, as well as Australia and New Zealand, have come in above expectations. 

Opinions vary widely on how persistent these inflationary dynamics will be.  Some central banks (Norway, New Zealand) have already lifted rates, and bond markets are pricing in rate rises by large economy central banks.  But the ECB, the Fed, and the Bank of England remain unpersuaded.