Global economic prospects have improved again, but the bumpy
recovery and skewed macroeconomic policy mix in advanced economies are
complicating policymaking in emerging market economies. Chapter 3
examines the prospects for inflation, particularly because inflation was
remarkably stable in the wake of the Great Recession and, in fact, has
become less responsive to cyclical conditions. Chapter 4 examines
whether today’s fast-growing, dynamic low-income countries are likely to
maintain their momentum and avoid the reversals that afflicted many
such countries in the past.
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