Banking Crises and Inflation
After banking crises, inflation patterns vary significantly, with a notable increase in inflation observed in Latin America post-World War II, but not in advanced economies. While immediate inflation concerns may be minimal, the potential for inflation looms larger in a 5-10 year horizon due to prolonged high debt levels. The unique context of the current crisis, where global investors turned to US Treasuries, further complicates the inflation outlook.In this clip
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EconTalk
Carmen Reinhart on Financial Crises
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