After a long period of being low and even negative, inflation is now higher than it has been in almost 40 years. Though still well short of the twin peaks of 1975 and 1980, it is the fifth highest rate recorded since the end of WWII, and it is still rising.
The above is fantastic for students of Economics. In the 1960's ; the Phillips curve was the go. But we now should focus more on the damage done in the recent past by some Central banks & the expected future damage of their current policy's. There is no way their current interest rate hikes will bring inflation back to 2% to 3%. Therefore in just using interest rates/money supply (quant easing tightening) many will get stagflation. Declines in medium incomes, higher unemployment etc. The Central banks created the mess of minus real interest rates ; & so if they cannot fix their mess; they seriously need early retirement.
This Ain’t Your Daddy’s Inflation
The above is fantastic for students of Economics. In the 1960's ; the Phillips curve was the go. But we now should focus more on the damage done in the recent past by some Central banks & the expected future damage of their current policy's. There is no way their current interest rate hikes will bring inflation back to 2% to 3%. Therefore in just using interest rates/money supply (quant easing tightening) many will get stagflation. Declines in medium incomes, higher unemployment etc. The Central banks created the mess of minus real interest rates ; & so if they cannot fix their mess; they seriously need early retirement.