Earlier this year Fathom reviewed the inflation outlook from three different perspectives. Each brought into focus a different aspect of inflationary pressures. This note discusses the key findings from each of those pieces and the implications for monetary policy. In Fathom’s view, the risks to inflation are skewed to the upside and, more likely than not, higher inflation will persist for longer than many expect – and this may eventually force central bankers to intervene.

The first article explored inflation from a New Keynesian perspective: The rise and  fall of the output gap

The second article examined monetarist theory: If I were a montarist…

The third article looked at the Lewis turning point: Has China passed the Lewis turning point?

 

 

[Please click below to read the full note.]