18 countries in the EU report official inflation rates above 10%. This week the ECB raised rates to 2.00% to “fight” inflation and yet countries like Italy are saying the ECB is crazy for keeping rates so high

by silvertomars

Italy is hooked on low-cost cash.

Europe will probably be going through larger power inflation + commodities inflation pushed by China’s demand.. folks suppose inflation return to regular quickly. it is time to get up. Stagflation will get loads worse..

— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) December 17, 2022

As soon as core inflation surpasses 4-5%, historical past reveals there may be one efficient technique to sluggish it down.

Increase nominal charges above core CPI by 50-100 bps.

And hold coverage tight for some time.

Will Central Banks do it?
Sure.

Is it going to trigger a recession?
Sure.

— Alf (@MacroAlf) December 16, 2022