18 nations within the EU report official inflation charges above 10%. This week the ECB raised charges to 2.00% to “combat” inflation and but nations like Italy are saying the ECB is loopy for conserving charges so excessive

by silvertomars

Italy is hooked on low cost cash.

Europe shall 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 so much worse..

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

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

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

And maintain coverage tight for some time.

Will Central Banks do it?
Sure.

Is it going to trigger a recession?
Sure.

— Alf (@MacroAlf) December 16, 2022