Inflation especially severe in Anglo countries.
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Continental Europe, so far at least, seems to have escaped the worst of the scourge. Inflation is leaving barely a trace on Japan. But it is entwining itself around Anglophone economies. Canada is faring slightly worse even than America. Britain has a big problem on its hands (see chart).
A few factors explain the differences. Total fiscal stimulus across Anglophone countries in 2020-21 was about 40% more generous than in other rich places, according to our estimates. It was also more focused on handouts to households (such as stimulus cheques).
That may have further stoked demand. Monetary policy in the euro area and Japan was already ultra-loose before the pandemic, limiting the amount of extra stimulus central banks could provide. Britain’s inflation may also reflect an idiosyncratic factor: Brexit. It turns out that breaking with your largest trading partner causes costs to rise.
https://www.economist.com/finance-an...nched/21809225
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