May 31, 2026 — Political leaders find it difficult to deal with inflation. Even in those cases when incomes rise faster than prices, voters complain bitterly about inflation’s effect on them. Even when inflation occurs throughout the world, the public in each country holds its own politicians responsible.
And even when an individual country is indeed subject to unusually high inflation, there is often little its leaders can do about it. The most salient policy lever at the government’s disposal, insuring tight monetary policy, takes time to show up in inflation numbers, and usually comes at the cost of lost output and employment.