21 May 2023

PERSISTENT IT IS! . . .Transitory Inflation bites the dust

 

From the paper by , the First Managing Director of the #IMF, on tackling high #inflation. Gita is the latest to warn that "markets are likely too optimistic" about inflation falling quickly and #CentralBanks cutting rates in 2023. I agree with this which, I think, is actually the easier part of the assessment. As noted yesterday, the more difficult is assessing the cost of certain central banks, and the Fed in particular, targeting a potentially outdated inflation target due to a world of deficient aggregate supply. imf.org/en/News/Articl #economy #imfnews #econtwitter
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