Flash: Global inflation looks to mount – Goldman Sachs

FXstreet.com (New York) - According to the Economics Research Team at Goldman Sachs, “Inflation is likely to rise in places where output gaps improve the most, with exceptions related to idiosyncratic factors.”

However, unless inflationary pressures become extreme, it is difficult to justify scenarios where policy tightens financial conditions prematurely or excessively. “When the recent bout of market turbulence abates, markets should begin to reflect the view that the world’s ‘room to grow’ is larger than is sometimes perceived, and adapt to a gradual rather than abrupt return to normalcy.” the team warns.