Inflation and the Global Economy

After cooling down a notch last year, the global recovery is heating up again. A spate of stronger-than-expected economic reports around the world shows that growth is speeding up and broadening across countries and industries. The benefits for global trade, especially for U.S. exports, are clear, but this new phase of the upturn also brings new risks. Inflation is picking up in China and other emerging-market economies, as well as in Britain, and the world’s central banks have taken notice.