Italy is addicted to cheap money.
Europe will be facing higher energy inflation + commodities inflation driven by China's demand.. people think inflation return to normal soon. it's time to wake up. Stagflation will get a lot worse..
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) December 17, 2022
Once core inflation surpasses 4-5%, history shows there is one effective way to slow it down.
Raise nominal rates above core CPI by 50-100 bps.
And keep policy tight for a while.
Will Central Banks do it?
Is it going to cause a recession?
— Alf (@MacroAlf) December 16, 2022