Bank of England policy maker Silvana Tenreyro said responding earlier to inflation would have driven unemployment to levels last seen in the 1990s and that nobody could have predicted the scale of shocks that have hit the economy.
“We have been shocked by the biggest shock imaginable,” Tenreyro said on a panel discussion Tuesday. “Not only the pandemic but the build up to the war, the war itself, new waves of Covid affecting supply. These are called shocks because they are not anticipated. They are deviations from the model.”
