The Effects of the Financial Market and Economic Crisis on Inflation

Josef Baumgartner

Austrian Economic Quarterly, 2010, vol. 15, issue 1, 98-102

Abstract: The risk of a sustained acceleration of inflation due to the expansionary monetary and fiscal policies in the wake of the global recession seems low, if the central banks reduce the money supply rapidly enough as soon as the crisis abates and if governments present credible measures to consolidate public finances and thus the long-run inflation expectations remain firmly anchored at a low level.

Keywords: Financial Market Crisis; Price Trends; Inflation; Deflation (search for similar items in EconPapers)
Date: 2010
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