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).