Inflation: dead, or just forgotten?Feb 1, 2016

Key Points

The US and global economy are six years into their post-Great Recession recoveries. Over these past six years, growth has proved resilient to a number of shocks, including the eurozone debt crisis, a variety of policy-induced mini-crises in the US (the debt ceiling, fiscal cliff and taper tantrum, to name just a few), and the beginning of an important shift in China’s growth model. Average global growth during 2010–2014 compares favorably with the pre-global financial crisis (GFC) record—except for the exceptionally strong growth of 2002–2007; in the US, the unemployment rate has declined to 5%, bringing the labor market close to full employment.