Everyone's favourite ECB chart. #glwt pic.twitter.com/wesPQMpsTS
— Frederik Ducrozet (@fwred) October 2, 2020
Click for the thread.
I see in the responses that Japan is equally bad at forecasting inflation.
I am a trained, though not academic or practicing, economist. This speaks to an enduring and pervasive question for at least the past decade. Whatever happened to inflation? From everything I see and know, it should have been emerging with devastating frequency.
According to traditional theory we ought to have been seeing a fair amount in many countries at several times over the past few years. Additionally, most countries in the two decades have relied increasingly heavily on printing money during times of crisis. Massive increases in government debt should have been driving up inflation but that is not what has happened.
I have seen many, many explanations for why inflation has continued to not show up. Most of them are plausible, few of them are convincing.
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