Blanchard and Summers say higher inflation likely to persist

Veteran economists say structural factors are likely to push up neutral rate and inflation

Larry Summers
Larry Summers
Photo: Ralph Alswang/Lawrence H Summers

Even if central banks bring an end to the current bout of high inflation, price rises and interest rates are likely to remain higher then before the Covid-19 pandemic, Olivier Blanchard and Larry Summers argue.

The two economists weighed up the forces likely to affect neutral interest rates in the years ahead, during remarks at an event hosted by the Peterson Institute on March 7.

Former International Monetary Fund chief economist Blanchard said it was “very striking” that despite recent

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