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Lane: The 2021-2022 inflation surges and monetary policy in the euro area
In this blog post, I review the monetary policy decisions of the ECB between April 2021 and December 2023 in responding to the extraordinary inflation shocks that occurred in 2021 and 2022.[ 2 ] While the 2021 recovery from the 2020 pandemic trough resulted in a widespread inflation surge across advanced economies, the February 2022 Russian invasion of Ukraine constituted a distinct additional shock that accounted for most of the extraordinary surge in inflation during 2022, especially in Europe. My overall aim is to describe and explain the actual monetary policy path that was decided by the Governing Council of the ... (full story)