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 …

. There is strong evidence of a positive and significant association between the pass-through and the average inflation rate … across countries and periods. The inflation rate, moreover, dominates other macroeconomic variables in explaining cross …