Discussion at Forum New Economy: Lessons from the inflation shock
03/26/2024Co-author Jérôme Creel from the Paris-based OFCE discussed the results of a new Forum New Economy Working Paper with Peter Bofinger in our New Economy Short Cut: “Lessons from the inflation shock: A new paradigm for central banks and governments?” on 26 March 2024.
For a long time, it seemed clear that in the event of inflation, monetary authorities would have to fight it with high interest rates. Governments were not involved. Now a number of governments have responded to the inflation shock of 2022 with price brakes and other interventions – and apparently successfully. Is it time to rewrite the textbooks?
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