The Ministry of Inflation
The situation
Central banks around the world are facing their stiffest inflationary challenge since the 1970s. Commodity price shocks due to Russia’s invasion of Ukraine, supply-chains snarled by lockdowns in China and consumers looking to spend cash accumulated during the pandemic have combined into a potent price increasing cocktail. In the short and medium-term, central banks will fight alone, but over the long-term, governments have arguably a greater responsibility for taming inflation. Are they suitably equipped to do so?
Read the rest here: https://economicinsights.substack.com/p/the-minis…
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