For years, the European Central Bank has been succumbing to political interests and pursuing objectives beyond the scope of its primary mandate: maintaining price stability. But now that inflationary pressures are building, the ECB’s credibility is on the line.
warns that the European Central Bank’s politicization will catch up to it in the new inflationary environment.
warns that transatlantic monetary-policy divergence could lead to trade tensions, attributes Russia’s recent aggression largely to higher gas prices, and doubts that China’s regulatory crackdown will impede its economic progress.
Forecasting inflation is a staple of macroeconomic modeling, yet virtually all economists’ predictions for the United States in 2021 were way off the mark. This dismal performance reflected a collective failure to take economic models seriously enough, as well as other analytical shortcomings.
ascribes near-universal forecasting errors in 2021 to not taking economic models seriously enough.
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