Customers shop at a retail store in Vernon Hills, Illinois, on June 12. The highly anticipated US recession still has not arrived as consumers keep spending and employers keep hiring despite higher borrowing costs. Photo: AP
Opinion
Opinion
Macroscope
High inflation or economic turmoil? Central banks face unpalatable policy choices
- Raising interest rates high enough for inflation to start falling was relatively straightforward for central banks, but bringing it down to target levels will be tricky
- The lag inherent in monetary policy means it is hard to know whether central banks have done too much
Customers shop at a retail store in Vernon Hills, Illinois, on June 12. The highly anticipated US recession still has not arrived as consumers keep spending and employers keep hiring despite higher borrowing costs. Photo: AP
