ECONOMY

Will Inflation Stay High for Decades? One Influential Economist Says Yes

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When the global economy tanked in March 2020, the rate of inflation looked like it was heading to zero. That made it a surprising moment for former UK central banker Charles Goodhart to predict that inflation would hit between 5% and 10% in 2021—and stay high.

Mr. Goodhart reasoned that a seismic shift was under way in the world economy, one that fiscal stimulus and the post-pandemic recovery would only hasten. A long glut of inexpensive labor that had kept prices and wages down for decades, he said, was giving way to an era of worker shortagesand hence higher prices.

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