The future of inflation

Goodhart, C. A. E. (2022). The future of inflation. In ECB Forum on Central Banking. Beyond the pandemic: the future of monetary policy (pp. 99 - 103). European Central Bank.
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We no longer have a generally accepted theory of inflation. This vacuum has been partially filled by reliance on inflationary expectations, but this is a weak reed. Instead, my view is that the main determinants of the structural trend in inflation has been the longer-term shifts in the availability of labour.

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