🛢️ When oil is scarce and debt is binding: policy sequencing under a severe energy supply shock
If temporary monetary-fiscal coordination is feasible, it should be pre-committed, conditional and bounded by a published exit rule.
📑 Working Paper by Gene Frieda
🔗 buff.ly/XKrbNEd
#EconSky
With inflation still binding and fiscal space thin, the 2026 Iran shock revives the case for pre-committed, conditional yield anchors with clear exit
NEW: US CPI inflation rose to 4.2% year-on-year in data released this morning, hitting the highest level since 2023 while increasing 0.5% month-on-month
Core CPI inflation rose to 2.9% year-on-year, increasing 0.2% month-on-month
