Opinion
Central banks may be repeating their pandemic errors
Central banks delayed rate increases after the pandemic on the basis they could not forecast the future, but now use rubbery projections to rationalise rate cuts.
Christopher JoyeColumnistInvestors need to be wary of the burgeoning downside risks embedded in assets that are priced for perfection and ill-prepared to deal with persistent inflation problems.
Recall that most global central banks were sluggish in responding to evidence that the pandemic-induced inflation shock carried both temporary supply-side and much more enduring, and therefore damaging, demand-side characteristics, which had become clear by late 2021.
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