Wage dynamics and climate change policies in an inflationary world

Date

October 5, 2022, 9:00 AM to 10:00 AM EDT
Virtual Event

Olivier Blanchard (PIIE), John Bluedorn (IMF), Benjamin Carton (IMF), Jean-Marc Natal (IMF) and Pinelopi Koujianou Goldberg (PIIE)

Event Summary

The global cost of living has surged, with inflation rising to 40-year highs in some economies. As countries recover from the COVID-19 pandemic, supply-demand imbalances linger, dragging on economic activity and pushing prices up. At the same time, energy and food prices have spiked amid worsening geopolitical tensions.

What do these conditions mean for global inflation prospects? The International Monetary Fund's (IMF) October 2022 World Economic Outlook examines two economic forces that could impact inflation going forward. One chapter looks at wage dynamics post-COVID-19, wage-price spiral risks, and how policymakers can respond. Another chapter investigates the potential near-term effects of critical climate policies on inflation and economic activity and how they can be best designed.

After briefly summarizing the chapters, the presenters discussed their findings with PIIE senior fellows Olivier Blanchard and Pinelopi Koujianou Goldberg. A Q&A with the audience followed.

MODERATOR

Olivier Blanchard
C. Fred Bergsten Senior Fellow, PIIE

PRESENTERS

John Bluedorn
Deputy Division Chief, Research Department, IMF

Benjamin Carton
Senior Economist, Research Department, IMF

Jean-Marc Natal
Deputy Division Chief, Research Department, IMF

DISCUSSANT

Pinelopi Koujianou Goldberg
Nonresident Senior Fellow, PIIE

Video