He added that the low growth of productivity makes the lives of central banks much more difficult because pressure is created to maintain flexibility in policies in order to sustain economic growth against weak economic foundations.
In recent times, of political uncertainty, the central banks will be affected in different ways and that is that in the face of these conflicts, companies will postpone investments and households will avoid consuming lasting goods, which will in isolation cause inflation, explained the doctor in economics.
“But it is likely that an uncertain world is also more volatile, particularly for financial markets. In recent weeks we have seen considerable oscillations in asset prices, including exchange rates, while market participants struggled to determine How policies would evolve and how to position themselves accordingly, “he said.
He added that these fluctuations in the exchange rate will also generate inflation.
