DUMA GQUBULE: Rate hikes are not the way to tame supply-side inflation
‘Team transitory’ won and now central bankers should admit they were spectacularly wrong
For the past two years economists have been divided into two camps on how to tame inflation, which rose at the fastest rate in four decades in many countries.
‘Team transitory’ said inflation was due to supply-side shocks related to the pandemic and, later, the war in Ukraine. All supply-side shocks are transitory and eventually work themselves out of the system through base effects...
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