This might be a debatable assertion. We are facing a significant and probably a permanent change in relative prices globally. We also have to be concerned about pricing and unit labour cost responses to these relative price changes.
If producers simply pass on these increases, and if wages increase to compensate labour for these increases without higher levels of productivity growth, and if we  2  BIS Review 65/2008  allow this process to take effect, inflation expectations will deteriorate and generalised inflation will accelerate. We cannot simply sit back idly, the stakes are too high.