Thursday, January 13, 2022

Inflation and the 'Great Lockdown'

The Great Lockdown (IMF, 2020) could either lead to high inflation (eg. Brazil) or deflation (eg. Japan). According to this article, the structural changes that could occur through inflation channels moving forward are:

1) Shift in consumption patterns during the pandemic;

2) Change in competitive dynamics; and

3) Impact from economic scarring and shifts in labour market.










Image credit: Pew Research Center

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