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The Effects of the Financial Market and Economic Crisis on Inflation

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  • Josef Baumgartner

Abstract

The risk of a sustained acceleration of inflation due to the expansionary monetary and fiscal policies in the wake of the global recession seems low, if the central banks reduce the money supply rapidly enough as soon as the crisis abates and if governments present credible measures to consolidate public finances and thus the long-run inflation expectations remain firmly anchored at a low level.

Suggested Citation

  • Josef Baumgartner, 2010. "The Effects of the Financial Market and Economic Crisis on Inflation," Austrian Economic Quarterly, WIFO, vol. 15(1), pages 98-102, April.
    • Handle: RePEc:wfo:wquart:y:2010:i:1:p:98-102
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