Published on 8 February 2024

Homme d'affaires pointant du doigt un symbole danger dans une courbe statistique

Eco notepad, billet No. 344. When unsure about the cooling effect of interest rate rises on inflation, central bankers are advised to moderate their response and wait and see. However, this cautious approach is only wise if economic agents do not anticipate a systematic under-reaction. Otherwise, it can become counter-productive, although other arguments for gradualism may apply.

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Updated on 26 March 2024