BIS releases paper on low inflation environment

Bank for International Settlements challenges conventional thinking on inflation

The Bank for International Settlements (BIS) has put out a paper aiming to show that the inflation process has changed. Its stability round the globe and “its sensitivity to measures of economic slack and increases in input costs appears to have declined”, the report suggests. The report goes on to say that this has generally been attributed to successful monetary policy but proposes an alternative explanation. Current inflation models are too "country-centric" as they fail to take

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