Research Briefing

A greener economy won’t lead to 1970s-style inflation

Global | A greener economy won’t lead to 1970s-style inflation

The transition to a greener economy through changes in government climate policy, technology, investment, and consumer preferences will fuel huge demand for key raw materials and may create inflationary threats in the economy.
However, given the decreasing role of commodities in determining inflation over the past few decades, the expected supply response to currently elevated commodity prices, and generally well anchored inflation expectations, a shift to persistently higher inflation via this channel is unlikely in the near-term.
What you will learn:

  • Pandemic supply constraints and financial speculation are also at play
  • Over the next few years, green commodities are also likely to reflect a fraction of commodity consumption
  • Also, several factors that have led commodities to play a smaller role in the economy
Back to Resource Hub

Related Services

Post

Pacific Northwest to withstand challenges and lead growth

The Pacific Northwest’s robust economy is forecast to continue to outperform over the next few years. A large presence of high-growth tech and manufacturing sectors supports the region's largest cities—Seattle, Portland, and Boise.

Find Out More

Post

India has an edge over Mexico, but is not the next China

Our tool suggests India is a strong contender. Holding India back is its low productivity per worker and poor education levels, but it still is the top-scoring emerging market.

Find Out More