
We may have slain the inflation dragon
When the Facts Change
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Analyzing the Decline in Economic Activity and Inflation Trends
This chapter examines the recent drop in the Purchasing Managers' Index (PMI) to 41.1%, highlighting declining economic activity reminiscent of the Global Financial Crisis. The discussion also explores the effects of monetary policies on demand, the unexpected inflation surge of 2021-2022, and the factors driving the current decline in inflation.
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