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The return of inflation

Author

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  • Ernst Baltensperger

    (University of Bern)

Abstract

For a quarter of a century, the western world has enjoyed a macroeconomic environment characterized by low and stable inflation. Over the last two years, this benign state has dramatically changed. In America and Europe, inflation has resurged with unexpected vigor. Treated at first by central banks and most of their observers as a mere temporary aberration, which would soon fade again without much need for action, it has since assumed a virulence which has forced central banks to tighten their policies much more forcefully than was initially expected. How did all this come about? How are central banks and their monetary policies to be judged?

Suggested Citation

  • Ernst Baltensperger, 2023. "The return of inflation," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 159(1), pages 1-18, December.
    • Handle: RePEc:spr:sjecst:v:159:y:2023:i:1:d:10.1186_s41937-023-00114-x
    DOI: 10.1186/s41937-023-00114-x
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    References listed on IDEAS

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    5. Jerome H. Powell, 2021. "Opening Remarks: Monetary Policy in the Time of COVID," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 1-15, August.
    6. Willem H. Buiter, 2002. "The Fiscal Theory Of The Price Level: A Critique," Economic Journal, Royal Economic Society, vol. 112(481), pages 459-480, July.
    7. Woodford, Michael, 1995. "Price-level determinacy without control of a monetary aggregate," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 43(1), pages 1-46, December.
    8. Mark Gertler & Peter Karadi, 2013. "QE 1 vs. 2 vs. 3. . . : A Framework for Analyzing Large-Scale Asset Purchases as a Monetary Policy Tool," International Journal of Central Banking, International Journal of Central Banking, vol. 9(1), pages 5-53, January.
    9. Ben S. Bernanke, 2020. "The New Tools of Monetary Policy," American Economic Review, American Economic Association, vol. 110(4), pages 943-983, April.
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    Cited by:

    1. Moustafa, Khaled, 2024. "Actions to mitigate climate change," OSF Preprints cmyeb_v1, Center for Open Science.

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