The relationship between inflation and real GDP growth is one of the most widely researched topics in macroeconomics … policy, given the fact that low inflation in combination with high and sustained output growth should be the central … central banks all over the world have selected target levels for inflation and communicated them to the public. Against this …

Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic … growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the … reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they …