"Central Banks are not usually noted for their level of innovation, and the current reaction to rising inflation is no exception.
Economics 101 states that in times of rising inflation, monetary policy should be tightened by contracting money supply via increased interest rates.
But this textbook was written to deal with the only type of inflation that had never been seen.
In the current environment, inflation has been created only on one side of the economy, with wages not having risen by any significant degree.
The UK economy has been significantly stimulated, albeit artificially, by the country’s emergence from the Pandemic.
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Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.