We need to resolve a problem of each central bank being wary of tightening monetary policy without others doing likewise
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Inflation has suddenly become a major problem in virtually all countries across the world. What is unusual this time around is that advanced economies are at the forefront, with annual consumer price inflation currently 8.5% in the US, 7.5% in the eurozone, and 7% in the UK. Among emerging markets and developing countries, traditionally more resilient Asian economies also are recording high levels of inflation, with price growth in India, Bangladesh and South Korea reaching 7%, 6.2%, and 4.1%, respectively, in March.