The "Money Illusion" Keeps the Economy Hot | Juliette Declercq
Forward Guidance
00:00
The ECB's Plans to Hike Rates Could Delay Growth
The situation in Ukraine and Russia, do you think that could delay the European Central Bank's plans to hike rates and then even perhaps do quantitative tightening? I mean definitely will delay. The ECB is very focused on the fact that inflation in Europe has been much more supply driven than is the case in the US. If you're starting to hike into inflationary cycle which is supply driven you run a very high risk of basically pushing the economy to start inflation. In the end you're going to get rid of inflation but you'll also get rid of growth.
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