The big G3 central banks are all wrestling with the same dilemma: how do they keep a lid on second-round effects from inflation without incurring a recession? Or at least that is the phoney war currently taking place between the hawks and the doves. The former, knowing monetary policy operates with a lag, fear they're already too late on inflation, while the latter, knowing the post-pandemic consumer is a new beast, fear they're already too late on growth.
The problem is that neither has admitted their framework, and hence their communication, is wrong. This is not . . .
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