FROM spikes in Americans’ cost of living to surging factory-gate prices in China, inflation is stirring in all corners of the globe. Pick your era: the 1970s, the aftermath of Lehman Brothers Holdings Inc’s collapse or even the years after World War II. Let inflation go too far, and central banks risk a downturn if they have to rein in activity too forcefully. She told Bloomberg News last weekend that a bit more inflation would be a plus after years of lowball numbers. This is monetary policy 101.”Central bankers know how to jack up benchmark interest rates.

Source: The Star June 12, 2021 01:25 UTC