It is difficult to predict how long the current inflation will last in the medium to long run. One recent narrative regarding inflation is that, since the mild-inflation regime accompanied by anxiety over deflation has ended, we are about to enter a regime of high inflation. 1 There are others, however, who are skeptical whether inflation will take hold (Wolf 2022a; Krugman 2022a, 2022b).
Since the 2000s, the global economy has been concerned about secular stagnation or "Japanification" -- the combination of low inflation (or deflation), low growth, and low interest rates. But will this era of Japanification be finally over as the narrative insists?