OECD countries: Can a return of inflation be prevented?
Inflation has remained low for ten years in OECD countries despite the sharp fall in the unemployment rate, which has considerable consequences. But can the OECD avoid a return of inflation? Inflation could return under the effect of: A political reaction to the skewing of income distribution against employees, due to the shift to much more employee-friendly labour market policies; The energy transition, due to the rise in energy prices caused by the transition to fully renewable energy, and the intermittent nature of production; The need to use inflation (the inflation tax) to stabilise public debt ratios if real interest rates return to normal in the long term .