|
|
Article: Interest rates and inflation expectations.(The World Economy)
- Article from:
- National Institute Economic Review
- Article date:
- October 1, 2004
CopyrightCOPYRIGHT 2004 National Institute of Economic and Social Research. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
In our last forecast, we discussed the recent rise in global inflationary pressures. These pressures reflect emergence from the global recession of 2001-2 and monetary and fiscal laxity in several of the world's largest economies, as well as rising commodity prices and temporary factors such as indirect tax increases in some countries. While none of these pressures have eased, and some such as rising commodity prices have intensified, recent indicators suggest that inflationary expectations have actually come down over the past quarter. The downward drift in inflationary expectations has been accompanied by a drop in long-term interest rates. This means that we have not ...