Across the major advanced and emerging market economies, inflation has remained remarkably low and stable in the face of diverse economic conditions and shocks. Does the recent performance of inflation point to a new equilibrium or will underlying patterns shift as economies shake off the last vestiges of the financial crisis? In this paper, PGIM Fixed Income takes a look into the drivers of global inflation by analyzing developed and emerging market countries through three sets of variables—domestic (unemployment, wages, labor costs, money supply growth), external (exchange rate, import/export prices), and global (global inflation, output gap, commodity prices.)view more white papers
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