-
Monetary Policies Diverge as Inflation Poses Unique Challenges, Benefits -
The past two years have been marked by two major global trends: 1) soaring inflation across nearly every major economy outside of China (Figure 1), and 2) a significant rise in interest rates in every major economy except China and Japan (Figure 2). When it comes to the degree of tightening monetary policy, however, there are subtle but important divergences occurring among central banks. Some of them have moved much more aggressively than others to contain inflation. Figure 1: Core inflation has soared across OECD nations and may have crested in many nations Figure 2: Most central banks outside of China and Japan ... (full story)