Andrew Sentance begins by asking: "Why has inflation turned out persistently above target, despite the widespread expectation that it would be pushed down by the financial crisis and the global recession?" The answer, he argues, is that ".too much faith is being put on the impact of a large 'output gap' pushing down on inflation and not enough weight has been put on the upward pressure from the global environment and the exchange rate".
Published on
17 February 2011
Press release