How will central banks respond to the inflation threat?

The rise in inflation and the question of how central banks will respond has dominated headlines over recent weeks. In this Global Central Bank Watch, we set out a framework for thinking about how the inflation threat and other factors will determine the path of policy in the world’s major advanced and emerging economies in the months ahead. We also highlight some key dates and events to watch for more information about the inflation outlook and how central banks’ reaction functions are evolving.