Early to Hike, Early to Thrive?
Several central banks that began raising interests well before US and eurozone policymakers are still facing persistent inflation. But it was the right choice, because inflation was always likely to prove stubborn in today’s conditions, and waiting would have required even larger hikes later, with a heavier output cost.
https://prosyn.org/kvkaGPL
LONDON – Brazil, Chile, Hungary, New Zealand, Norway, Peru, Poland, and South Korea: all raised interest rates early and high. But even after an average hike of six percentage points in the year to October, inflation is surging and growth is sagging. Have the countries in Hikelandia, as The Economist calls them, made a policy mistake?