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Inflation Shifts and the Bond Market Response

All the Credit

CHAPTER

Persisting Inflation and Monetary Policy Debate

The chapter delves into the reasons behind the current persistent high inflation levels, emphasizing on factors like relative price shocks and less favorable trends. It also explores the ongoing debate regarding the effectiveness of monetary policy in addressing inflation in Europe and the US, discussing possible delayed and shallower rate cuts amidst concerns of higher real interest rates.

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