Inflation is Not Here to Stay.

Introduction.

As the impact of COVID-19 wanes and governments reduce or completely withdraw social distancing measures , a heterogenous recovery appears to be in sight. While the debate on secular stagnation continues to ravage, inflation appears to be exceeding its mandated targets in recent months. The COVID-19 pandemic depressed demand across most advanced and developing market economies and the 90th percentile of most income distributions were affected, causing consumers to postpone purchases of cars, electronic products, and services such as tourism and entertainment.