Price Stability in Times of Change
The ECB Podcast
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Navigating Inflation and Trade Uncertainties
This chapter explores the current state of inflation, which has stabilized around 2%, and emphasizes the cautious monetary policy responses amid global trade tensions and geopolitical risks. The discussion includes the implications of trade tariffs on both U.S. and South Korean economies, highlighting potential deflationary pressures, financial stability risks, and the dynamics of interest rates. Moreover, it addresses the interconnectedness of export-driven economies and the challenges faced by central banks in adapting to evolving economic conditions.
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