Report
Patrick Artus

What type of inflation should monetary policy correct?

Inflation can have a number of causes: a sharp rise in demand, an unfavourable trend in supply (which may be due to sharp increases in wages, increases in commodity prices, higher profit margins); a technological shock (shift to a more costly technology, as with the energy transition); a depreciation of the exchange rate. We seek to determine in what cases (for what origins of inflation) the central bank is justified in fighting inflation. We then seek to identify what this means for current monetary policy in the United States and the euro zone, especially after the sharp rise in commodity prices caused by the war in Ukraine.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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