Coronavirus: Deflationary effect in the short term, inflationary effect in the medium term for the OECD
In the short term, the coronavirus crisis will be deflationary for OECD countries: growth and inflation will fall due to falling growth and commodity prices. But in the medium term, the coronavirus crisis will give rise to higher inflation. It will drive companies in OECD countries to produce more in their region and less in emerging countries, which means that OECD countries will benefit less from cheap imports from emerging countries, which will be replaced by more expensive local production, hence the inflationary effect.