J. Safra Sarasin on "stagflationary" shocks and why initial conditions matter

J. Safra Sarasin on "stagflationary" shocks and why initial conditions matter

It is unusual for so many of the world’s most important central banks to meet in the same week, as the Fed, the ECB, the Swiss National Bank, the Bank of England, the Bank of Japan, the Swedish Riksbank and the Royal Bank of Australia have just done. It is rarer still that they confront a broadly similar exogenous shock, even if higher oil and gas prices affect their economies to different degrees. In essence, they face the same question: should…