Report
Patrick Artus

Would it not be better to correct inflation quickly, rather than let it persist?

Given the upward trend in prices in the United States and Europe, the rate hikes that are now being considered would do very little to curb inflation. Central banks have no intention of really fighting inflation for the time being; their priority is to preserve growth. But is this choice, which will keep inflation high for a long time, the right one? Would it not be better, as in the past, to quickly correct inflation with a markedly restrictive monetary policy in order to get rid of it later? Lastly, if a moderate hike in interest rates has little effect on inflation, would it not be better to hike interest rates significantly ? And why not do it right away?
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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