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The decade before the pandemic was marked by low inflation, low interest rates, and weak wage growth. Following the Great Recession, advanced economies experienced a period of prolonged economic stagnation together with weak labor markets. And some economists, including yours truly, thought it would last much longer.
A pandemic and half a dozen global shocks later, I can say with confidence that era is over. We now face structurally higher inflation and interest rates. Some of this is clearly policy driven — like Trump’s trade war and migration policies. In Europe, some governments have been pushing for overly aggressive minimum