We often have difficulty in recognizing changes when they are taking place. This can be said in the case of the rise and bursting of the financial bubbles and the development of IT technology. Ongoing global disinflation, which is demanding the attention of central banks worldwide, could turn out to be a major change in retrospect.
In an environment of considerable persisting slack in labor and product markets, and with productivity having increased substantially in recent quarters, cost and price inflation should remain quite subdued.