Home Views US Economy

The inflation tail is wagging the policy dog

Daniel J. Arbess
Daniel J. Arbess5/25/2022 9:39 PM GMT+08  • 5 min read
The inflation tail is wagging the policy dog
Joe Biden is repeating what Donald Trump did / Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

With prices in many advanced economies surging, central banks are being roundly criticised for falling “behind the curve” on inflation. But they didn’t. Government policies and geopolitics constrained central bankers from normalising their monetary policies until inflation was already upon them.

Chinese and Russian supply-chain disruptions collided with the synthetic demand created by the US Department of the Treasury mailing free money to American consumers.

There is now very little room for monetary tightening without stalling the economy (which is already faltering under tightening financial conditions).

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now