(Global Stagflation)(Inflationary damage) - '..acc to Taylor Rule .. ECB rates should be 7.2 ppts higher for the entire Eurozone..'

'..Germany where key interest rate should be at 10.3% & so 6.8 ppts higher than the current rate, acc to Taylor Rule w/German core inflation at 5.9% & unemployment way below NAIRU. ECB rates should be 7.2 ppts higher for the entire Eurozone & 8.2 ppts higher for Italy.'

- Holger Zschaepitz (Source, May 4, 2023)



Context

'Inflationary damage..' - (Banking Reform) - 'Disaster is a strong but appropriate word that applies perfectly to the state of U.S. monetary policy..' - Dr. Hunt

(Global Stagflation) - 'The European economy .. stubborn inflation raises the price of groceries..' - '..Fed .. sticky inflation..'

(Global Stagflation)(Inflation out of control) - Inflationary Psychology Has Set In. Dislodging It Won’t Be Easy.


(Disaster)(Fed, ECB way behind the curve) - 'US Inflation Quickens to 9.1% .. relentless price pressures..' - 'Inflation at current levels is a severe economic, social, and political problem..'

(The Taylor rule) - '..Bullard .. Using standards set by Stanford economics professor John Taylor..'

'..inflationary forces have been unleashed..'


(Global Stagflation) - '..inflation tends toward a cycle of unpredictability and destabilizing volatility that can extend for years and even decades.'

(Global Stagflation) - 'Fed's policy rate will need to rise..'

'..fractional banking implodes. Which is what happened in 1997 and 2007 — and what I saw [in 2023.]' - Gillian Tett