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 maintaining charges so excessive

by silvertomars

Italy is hooked on low cost cash.

Europe might be dealing with increased power inflation + commodities inflation pushed by China’s demand.. individuals assume 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’s one efficient option 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