The price stability and macroeconomic stability that prevailed over an extended period – the Great Moderation – enhanced the standing of economics and gave economists an enviable halo; the increasing sophistication of financial markets where risk could seemingly be measured with precision of up to five decimal points gave economics the clout of prophesy; and the way economists were able to raise obscure questions such as why drug dealers continue to live with their mothers, what school teachers and sumo wrestlers have in common, and answered those questions with impressive insights, awed common folk.
In an environment with very accommodative monetary policy, a key to keeping commodity price increases from passing through to other goods and services and creating more general inflation is to ensure that longer-run inflation expectations stay anchored. So far, that seems to be mostly the case. But, of course, expectations are well-anchored until they are not.