Yves here. Because the dint of wrong-headed official and press messaging is so loud, it seems we have to keep debunking it. The current inflation is not caused by anything central bankers can address. Having them use their sledgehammer of interest rate increase will simply kill growth while doing little to alleviate the underlying cost pressures. Administrations around the world are guilty of dereliction of duty.
However to tackle inflation, officials would have to admit their Covid policies are misguided, the Russia economic sanctions backfired disastrously, and they’ve been asleep at the switch in fixing supply chain issues they could remedy, say perhaps trucker pay and work condition. But oh no, can’t admit error! Better to test if citizens will actually vote you out of office than admit to being responsible and try to clean up messes.
By Anis Chowdhury, Adjunct Professor at Western Sydney University and University of New