Half of world’s economies have inflation below 2%; almost a fifth below zero
- Govt serious in bringing fugitive economic offenders to task: Rajnath Singh
- Sushma Swaraj arrives in China for talks with Wang Yi, SCO meet
- Make the best of technology to deal with administrative delays: Modi tells bureaucrats
- Amit Shah says ordinance shows Modi govt’s commitment to women’s safety
- Sanskrit most suitable for machine learning, AI: Ram Nath Kovind
The International Monetary Fund’s (IMF’s) World Economic Outlook has an entire chapter on disinflation throughout the world. The chart shows the share of countries with zero inflation, inflation below 1% and inflation below 2%.
The proportion of countries having very low inflation has gone up sharply due to the slack in the world economy, and low commodity and oil prices.
More importantly, the chapter concludes that the perceived ability of monetary policy to combat persistent disinflation may be diminishing in some economies. That ties in with the markets’ recent bout of questioning the efficacy of monetary policy in the developed economies to stave off deflation.