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A Closer Look at the Reasons for Low Inflation
The U.S. and other developed countries have been experiencing low inflation in recent years. A recent article in the Regional Economist explored possible reasons for this phenomenon. Research Officer and Economist Juan Sánchez and Senior Research Associate Hee Sung Kim explained that there are reasons to be concerned about very low inflation. If price increases remain below the central bank’s inflation target, they wrote, it may signal one of two things: The central bank doesn’t have inflation under control That its commitment to the target isn’t very strong Low inflation also could raise the risk of falling ... (full story)