Noting that employment levels and inflation now appear to be delinked, International Monetary Fund economists have concluded that prices would be unlikely to rise even if economies neared full employment. Given this, the way is cleared for more quantitative easing globally without fear of igniting a surge in prices. "Indeed ... any temporary over-stimulation of the economy -- perhaps stemming from misperception about the size of output gaps -- is likely to have only small effects on inflation," the economists conclude.

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