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Addressing Inflation Pressures Amid an Enduring Pandemic
The resurgence of the pandemic and the latest variant, Omicron, have sharply increased uncertainty around global economic prospects. This comes as several countries grapple with inflation well above their monetary policy targets. It is however evident that the strength of the economic recovery and magnitude of underlying inflationary pressures vary significantly across countries. Accordingly, policy responses to rising prices must be calibrated to the unique circumstances of individual economies. Inflation is likely to be higher for longer than previously thought. We see grounds for monetary policy in the United ... (full story)