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The impoverishing thinking of central bankers who want interest rate rises
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The impoverishing thinking of central bankers who want interest rate rises
In an article published yesterday in the Financial Times, Megan Greene, an external member of the Bank of England’s Monetary Policy Committee, argued that the UK may need higher interest rates if the war in the Middle East continues and energy prices rise as a consequence. Her concern is that rising energy prices might trigger what economists call “second-round inflationary effects”. In other words, workers might seek higher wages to offset risi…
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