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MUNICH, Germany (Project Syndicate)—Inflation seems to be on everyone’s mind nowadays. The debate usually centers on whether America’s massive monetary and fiscal stimulus will de-anchor inflation expectations and cause prices to spin out of control. But there is another trend that could also generate inflationary pressure: deglobalization.
Deglobalization has been occurring since the 2008 global financial crisis. But the coronavirus pandemic has accelerated the trend significantly. Using data from the financial crisis, Kemal…
