Skip to main content

What has driven periods of higher inflation in the past?

When contemplating whether we are entering a new era of higher inflation, it makes sense to first reflect upon the lessons from history. While there are several insights that apply to the current debate, a unifying theme is that sustained high inflation is not simply ‘always and everywhere a monetary phenomenon’ – labour and product market institutions determine the extent to which price pressures translate into actual inflation, and where inflation settles in the medium term is ultimately the decision of policymakers.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access