Lowflation: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add quote. Source: Bank of England https://www.bankofengland.co.uk/-/media/boe/files/speech/2020/covid-19-and-monetary-policy-speech-by-michael-saunders.pdf?la=en&hash=02111FB09D7C30180137C228BB61E8C5447A84F9) |
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A situation in which inflation is positive, but very low, for example below the (positive) inflation target of the central bank. | A situation in which inflation is positive, but very low, for example below the (positive) inflation target of the central bank. | ||
:<span style="color:#4B0082">'''''The economic impacts of Covid-19 to date'''''</span> | |||
:"At present, if we overdo the stimulus somewhat and then find the economy recovers strongly, we have ample tools and time to tighten policy again before persistent excess demand and inflation become a problem ... | |||
:Conversely, if we provide too little stimulus, the economy could slip into a lowflation trap that is much harder to escape, with greater long-term costs from business failures and high unemployment." | |||
:''Michael Saunders, External Member of the Bank of England's Monetary Policy Committee (MPC), May 2020.'' | |||
== See also == | == See also == | ||
* [[Bank of England]] | |||
* [[Central bank]] | * [[Central bank]] | ||
* [[COVID-19]] | |||
* [[Deflation]] | * [[Deflation]] | ||
* [[Inflation]] | * [[Inflation]] | ||
* [[Inflation target]] | |||
* [[Monetary Policy Committee]] | |||
* [[Stagflation]] | |||
* [[Tightening]] | |||
* [[ZLB problem]] | * [[ZLB problem]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 10:43, 12 June 2020
Economics.
A situation in which inflation is positive, but very low, for example below the (positive) inflation target of the central bank.
- The economic impacts of Covid-19 to date
- "At present, if we overdo the stimulus somewhat and then find the economy recovers strongly, we have ample tools and time to tighten policy again before persistent excess demand and inflation become a problem ...
- Conversely, if we provide too little stimulus, the economy could slip into a lowflation trap that is much harder to escape, with greater long-term costs from business failures and high unemployment."
- Michael Saunders, External Member of the Bank of England's Monetary Policy Committee (MPC), May 2020.
