Central banks try to tame inflation so as not to end up like Turkey

The increase in prices is now rooted in the world economy and the case of Argentina, on the verge of a new crash, worries the bankers. But the variables are many and answering is not easy

Joachim Nagel, president of the Bundesbank, is right: inflation is a greedy monster. And it is a many-headed monster, which is why it is so difficult to tame. Central banks are trying, but results so far are disappointing. A month ago the Bank of England hosted a ‘Festival of Errors’ in Edinburgh to discuss the lessons learned from past financial disasters. Next year perhaps we will also need to add the mistake made in 2022 which allowed inflation to take root in the economy like a bad plant. It wasn’t easy to eradicate it even in the early 80s, then the monetary tightening from the United States was even stronger (but inflation had reached 20 percent) however two-three years of recession followed before the “Reagan boom” ”.