Deloitte Monday Briefing: The New Normal For Inflation

The Monday Briefing, written by Ian Stewart, Deloitte's Chief Economist in the UK, gives a personal view on topical financial and economic issues.

• Five years after the onset of the Global Financial Crisis growth in much of the western world remains elusive.
• Governments want to rein in spending and balance their budgets. The hope is that the private sector will drive the recovery.
• In contrast to such orthodoxy on the fiscal side, monetary policy is being conducted in an ever more radical fashion.
• Central banks have cut interest rates to record lows and have pumped huge amounts of liquidity into the economy through Quantitative Easing.
• More subtly, the consensus around the primacy of low inflation in monetary policy is facing its greatest challenge.