How rate hikes trigger inflation (and riots)

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FTAlphaville with an argument that applies even more to Australia. 

Gianluca Benigno is professor of economics at HEC Lausanne, and formerly head of international research at the NY Fed.


The UK inflation rate hitting Bank of England’s 2 per cent target for two consecutive months has finally allowed the central bank to cut rates today, for the first time since Covid-19 infected the global economy.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.