The Global Economy and Inflation
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Publication Date:
March 29, 2009
There will be large discrepancies in the global economy in 2009, with advanced economies experiencing a strong contraction in output and the emerging economies pulling the world economy along to a growth rate that could still be 1.3 percent for the year as a whole. If the United States experiences too rapid a recovery, there may be a risk of another recession in 2010. Moreover, while the risk of deflation remains high, expectations for a return to inflation are rising, adding to uncertainty about the pattern and path of economic recovery.
