Most G8 countries seem incapable of achieving the political consensus required to take necessary steps such as raising the retirement age or significantly cutting the indexation of benefits to inflation.

In order to prevent pathological inflationary dynamics from becoming embedded even more deeply in the structure of the economy (including through wage indexation), Volcker dramatically changed the policy stance and made inflation public enemy number one.

Even with the prevalence of dollar indexation across the region, exchange rate appreciation would still help promote cheaper imports and higher living standards.

With little wage inflation, high goods inflation is unlikely.

Inflation!

Moreover, as public confidence in the de linked oil currencies increases over time, dollar indexation of private contracts will diminish, and currency movements will have a greater impact on overall prices.

And core inflation measures show no sign of accelerating inflation either.

Forget Inflation

In other words, the low inflation era will become the lower inflation era.

Beyond Inflation Targets

The Inflation Puzzle

Rethinking Inflation Targeting

Asia s Inflation Trap

China s Inflation Muddle

Inflation or Deflation?

Is Inflation Returning?

Russia s Eternal Inflation

An Inflation Reality Check

Inflation Comes to China

Is Inflation the Answer?

Farewell to Inflation Targeting?

The Bogey of Inflation

Everyone expects some inflation.

When Inflation Doves Cry

Inflation is under control.

Naturally, the major central banks are concerned with the inflation that they can control homemade inflation.

By contrast, inflation hawks argue that inflation must be attacked preemptively. While most central banks are inflation hawks, this stance is a matter of religion, not economic science.

During the low inflation era, which dates from the early 1990 s, developed country annual inflation rates averaged 2.4 . Central bank inflation targets are now normally set at 2 .

Headline inflation numbers are the only indication that rising inflation is a problem, or even a reality.

The Exaggerated Death of Inflation

The US was exporting inflation.

The Inflation of Hugo Chávez

Is Inflation the Right Battle?

The Failure of Inflation Targeting

The Ghost of Inflation Future

Inflation and unemployment remain rampant.

Inflation and other cost adjustments

On 17 April 2007, CPI inflation was reported at 3.1 (inflation of the Retail Prices Index was 4.8 ).

Naturally, the major central banks are concerned with the inflation that they can control homemade inflation. But this neglects global inflation driven by rising commodity prices, which has been increasingly evident.

With good communication policy, inflation expectations can be contained, and inflation can be brought down as quickly as necessary.

Moreover, the US government provides a very good inflation hedge in the form of Treasury Inflation Protected Securities (TIPS).

So central banks would have to regain anti inflation credibility very soon after subjecting investors to a punishing inflation.

During the low inflation era, which dates from the early 1990 s, developed country annual inflation rates averaged 2.4 .

It's a process of academic inflation.

Inflation is Now the Lesser Evil