Meanwhile, we continue to expect our key interest rates to remain at their present levels for an extended period of time, and well past the horizon of our net asset purchases. Thank you. 1 See Blanchard, O. and L. Summers (1986), “Hysteresis and the European Unemployment Problem”, NBER  Macroeconomics Annual, 1986, Volume 1; and Blanchard, O.
We have seen it recently. As the global economy recovered from recession in 2009, commodity prices, particularly food and oil prices rebounded raising headline inflation in many countries. However, headline inflation soon moderated in many advanced economies, as inflation expectations remained well anchored, besides significant negative output gap.