Presentation by Mr Claudio Borio, Head of the Monetary and Economic Department of the BIS - Basel, 25 June 2017.
An obvious policy question at the current juncture is whether an inflation flare-up could bring to an end the expansion under way. This question, in turn, begs an even more fundamental one: how much do we really know about the inflation process? Based on analysis presented in BIS Annual Reports, this presentation reaches three conclusions: we may be underestimating the influence that globalisation has had on inflation; if so, a flare-up may not be that likely; and if the hypothesis is correct, it would also point to refinements to current monetary policy strategies.
The views expressed here are my own and not necessarily those of the BIS or its member institutions.
