OECD countries: Low interest rates came at the cost of opening up trade with emerging countries, fossil fuel consumption and the skewing of income distribution against wage earners: Is it a problem if this arrangement changes?

Since the 1990s, OECD countries ha d benefited from ever-lower interest rates thanks primarily to ever-lower inflation. But across the OECD, this ever-lower inflation was obtained by: Opening up trade with emerging countries and China, where production costs were low; but in return, industry was offshored to emerging countries; Investing massively in fossil fuels, which kept their prices low on average; in return, CO 2 emissions rose sharply ; Skewing income distribution against wage earners, which kept wage growth low; the corollary was rising poverty among wage earners and rising inequality. The return to a more inflationary equilibrium should not be lamented if it is accompanied by industrial reshoring in OECD countries, a rapid energy transition and a fair income distribution. The return of inflation and more restrictive monetary policies are the price to pay.