I have been critical of the Fed and the Bank of England for some time. In particular, I think by not differentiating enough between supply and demand shocks to inflation, they have made a bad situation worse by hiking interest rates too much. However, I am also of the opinion that there was a demand shock to inflation that needed to be addressed with higher interest rates, just not as many as we got in 2022.
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Hiking rates in a shifting economy
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I have been critical of the Fed and the Bank of England for some time. In particular, I think by not differentiating enough between supply and demand shocks to inflation, they have made a bad situation worse by hiking interest rates too much. However, I am also of the opinion that there was a demand shock to inflation that needed to be addressed with higher interest rates, just not as many as we got in 2022.