Little did we know, three years back, that we would face one of the greatest challenges of our lifetime - a pandemic that would upend our daily lives and force us to navigate through unknown, unforeseen, and unanticipated turbulences.
I already mentioned one such uncertainty: the link between inflation and economic growth. Recent research has come up with a number of possible explanations accounting for the slower reaction of underlying inflation to a strengthening economy. One entails that despite the robust recovery, labour market slack might be larger than presumed.