How much is too much? Inflation’s costs and benefits

A period of moderately higher inflation could be a good thing for many economies, but there is a risk that policymakers become too accepting of the situation. We judge that the costs of higher inflation would start to outweigh the benefits in advanced economies if rates of more than about 5% were sustained.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.