1947, 1970s, 2008: Inflation experts look back into history for lessons

Central bankers know how to raise benchmark interest rates, but they have less experience in calibrating the exit from quantitative easing.

From spikes in Americans' cost of living to surging factory-gate prices in China, inflation is stirring in all corners of the globe. Monetary chieftains, meanwhile, are sticking to their guns, stressing the spurt is temporary. Investors trying to make sense of this are scouring history for the right analogies, and policy makers are scrutinizing the record for the best--and worst--approaches. Pick your era: the 1970s, the aftermath of Lehman Brothers Holdings Inc.’s collapse or even the years after World War II. All are being parsed for lessons.

A lot hinges on getting the historical context right. Let inflation go too far,