BRIAN KANTOR: Tighten up in the US, but lighten up in SA
17 February 2022 - 14:00
It is crunch time for most central banks — but not the Reserve Bank. Inflation rates have escaped the former, and recapturing inflation will not be a comfortable or comforting exercise. Rising prices, rising wages and the prices of other inputs can clearly be blamed on the usual suspect — more money created than has been willingly held by households, business and banks.
Excess money holdings (deposits at banks) have been exchanged for goods, services and other assets enough to raise their scarcity value. And supply has been unusually slow to respond to the unexpected strength of demand. ..
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