Inflation digs in; the OECD's new economic forecasts say that the past year's tightening of monetary policy around the world will do no more than hold inflation steady. (Organization for Economic Cooperation and Development) (Business)

Economist (US), The, July, 1989

Inflation digs in

The OECD's new economic forecasts(*) say that the past year's tightening of monetary policy around the world will do no more than hold inflation steady

AN ECONOMIC recovery that has lasted nearly seven years is impressive enough by post-war standards. But when the world's industrial countries can manage to grow, on average, by a strapping 4% in the sixth year of that upswing (1988), which was also the year after the biggest stockmarket crash since the 1920s, there seems little to complain about.

Quite right. Unfortunately, though, the party seems to be over. ...