Assumptions and Conventions viii
Further Information x
Data xi
Preface xii
Foreword xiii
Executive Summary xvi
Chapter 1. Global Prospects and Policies 1
- Growing Global Divergences 1
- Outlook: Stable but Slow 10
- Risks to the Outlook: Tilted to the Downside but More Balanced 19
- Policy Priorities: From Disinflation to Sustained Growth 22
- Box 1.1. Dimming Growth Prospects: A Longer Path to Convergence 26
- Box 1.2. Risk Assessment Surrounding the World Economic Outlook’s Baseline Projections 30
- Commodity Special Feature: Market Developments and the Commodity Price Channel of Monetary Policy 34
- References 46
- Introduction 49
- Recent Patterns in Inflation Expectations 52
- The Role of Expectations in Inflation Dynamics 55
- Expectations Formation and Monetary Policymaking 58
- Conclusions 64
- Box 2.1. Firms’ Inflation Expectations, Attention, and Monetary Policy Effectiveness 65
- Box 2.2. Fiscal Imprudence and Inflation Expectations: The Role of Monetary Policy Frameworks 66
- Box 2.3. Energy Subsidies, Inflation, and Expectations: Unpacking Euro Area Measures 67
- References 68
- Introduction 71
- What Makes Commodities Vulnerable in the Event of Fragmentation? 73
- Fragmentation in Commodity Markets 76
- Which Commodities Are Most Vulnerable? 77
- Economic Impacts of Commodity Market Fragmentation 79
- Implications for the Clean Energy Transition 83
- Summary and Policy Implications 84
- Box 3.1. Commodity Trade Tensions: Evidence from Tanker Traffic Data 87
- Box 3.2. Commodity Market Fragmentation in History: Many Shades of Gray 88
- Box 3.3. The Uneven Economic Effects of Commodity Market Fragmentation 89
- References 90