Eichengreen, Barry and Poonam Gupta, 2014: “Tapering Talk: The Impact of Expectations of Reduced Federal Reserve Security Purchases on Emerging Markets," MPRA Paper 53040, University Library of Munich, Germany.
Unfortunately, with no one taking responsibility for inflation, firms and households learnt that they couldn’t rely on money to keep its value. So, they became more vigilant, quickly raising their own wage and price demands in response to new inflation pressures. As this inflationary psychology set in, the pain of getting back to low inflation kept rising.