Cautionary tales from high-inflation emerging economies
What Brazil, Argentina and Turkey say about the importance of fiscal and monetary policy
IN RECENT MONTHS the world economy has come to resemble a badly microwaved dinner: generally hot, but with some bits merely lukewarm and others positively scorching. Consumer prices globally are likely to rise by 4.8% this year, according to the IMF, which would be the fastest increase since 2007. But price rises in emerging markets are running ahead of those in the rich world, and a few unfortunates, such as Argentina, Brazil and Turkey, are feeling particular pain. Their experience helps illustrate how and when inflation can get out of hand.
This article appeared in the Finance & economics section of the print edition under the headline “Living the high life”
Finance & economics November 6th 2021
From the November 6th 2021 edition
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