As Isabella Weber et al. point out, commodity specific price shocks can't really be handled by the existing institutions of economic stabilization. Thus you get a double dose of pain: first from the price shock & then from the rate hike.
academic.oup.com/icc/article/...
Nick Taylor
The European Central Bank raised interest rates as expected, hoping to prevent an Iran war-induced surge in energy prices from broadening out into higher inflation reut.rs/4eeOtbd
reut.rs
The European Central Bank raised interest rates as expected on Thursday, hoping to prevent an Iran war-induced surge in energy prices from broadening out into higher inflation.
