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Chartbook #152 The anti-inflation pivot of 2022 - How uncoordinated & contractionary monetary & fiscal policy risk a global recession.

adamtooze.substack.com · 2,061 words · saved by 1 readers

In response to the surge in prices that began in earnest in the summer of 2021 central banks all around the world are hiking interest rates. When taken together, a series of national policy moves add up to the most widespread tightening of monetary policy since the start of the fiat money era in the early 1970s.

In response to the surge in prices that began in earnest in the summer of 2021 central banks all around the world are hiking interest rates. When taken together, a series of national policy moves add up to the most widespread tightening of monetary policy since the start of the fiat money era in the early 1970s. Source: World Bank The tightening of monetary policy is compounded by a similar shift in fiscal policy. This attracts far less headline space than interest rates, but it too is unprecedented. The share of countries that are tightening their fiscal stance is greater today than it…

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