- Markus Demary / Michael Hüther ·
- IW-Report Nr. 12 ·
- 8. April 2021
Low for Long or Higher for Longer?
Inflation has started to increase, and the return of inflation comes at a time in which economies begin to recover from pandemic-induced and lockdown-induced recessions. This raises questions about how much and how long inflation will go up as well as about whether central banks have to step-up against inflation at the cost of slowing down the economic recovery. Has “low for long” turned into “higher for longer”?