The US Federal Reserve and the markets were surprised by inflation in 2021-22. Before that, and for more than a decade, there was a collective belief that somehow zero rates and printing gargantuan piles of central bank cash was harmless enough and good for markets.
And didn’t Janet Yellen’s tightening in 2017 show what a bad idea it was to try to deflate the air mattress?
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Adrian Blundell-Wignall writes on the world economy and is a former director of the OECD. He is currently in Paris.
