After five years without catastrophe, consensus expectations for economic growth in 2014 are optimistic, particularly for the major economies. With such a sanguine backdrop, one foregone conclusion in the mainstream is likely to be a continued decline in monetary stimulus after a “mission accomplished.” This would also imply that inflation and unemployment are generally under control around the world.

ECRI’s latest report outlines the actual picture for inflation and unemployment in the context of differing central bank analytical frameworks for predicting inflation, revealing which economies are still mired in liquidity traps.