ECB’s Kazaks: This Is Not a Race Toward Much Higher Rates — Econostream
We Are Around The Point Where Monetary Policy Starts To Become Contractionary - Must Consider Whether Further Tightening Would Needlessly Harm Growth If Inflation Is Seen Subsiding - Higher Yields Already Restrain Growth And Reduce Second-Round Inflation Risks - Rapid Inflation Decline Would Mean ECB Needs To Do Less - Reduced Second-Round Risks Would Allow Less Aggressive Policy Response - Current Inflation Shock Differs From Previous Episode; ECB Entered It With More Credibility - Inflation At 4%-4.5% Very Different From 8%-10%; Nonlinear Effects Not Yet Extremely Likely READ HERE
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We Are Around The Point Where Monetary Policy Starts To Become Contractionary - Must Consider Whether Further Tightening Would Needlessly Harm Growth If Inflation Is Seen Subsiding - Higher Yields Already Restrain Growth And Reduce Second-Round Inflation Risks - Rapid Inflation Decline Would Mean ECB Needs To Do Less - Reduced Second-Round Risks Would Allow Less Aggressive Policy Response - Current Inflation Shock Differs From Previous Episode; ECB Entered It With More Credibility - Inflation At 4%-4.5% Very Different From 8%-10%; Nonlinear Effects Not Yet Extremely Likely READ HERE