3 Comments
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Rainbow Roxy's avatar

Wow, the explanation of headline vs. core inflation really stood out to me. How do you see these different types interacting in current EU policy? Such a briliant analysis!

4Raws's avatar

This explains why policy responses feel incoherent. One tool cannot fix seventeen problems.

Atharva Shah's avatar

Here's the TL;DR version of this:

• Inflation is not a single economic phenomenon.

• Different inflation types require different policy responses.

• Monetary tools cannot fix structural greedflation.

• Imported inflation is largely uncontrollable.

• Naming the mechanism is the first step to solving it.