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Central Banks

Stiglitz Says Rate Hikes That Are Too Steep May Worsen Inflation

  • Higher rates make solving supply snarls harder, he says
  • Companies, landlords may be passing on rising interest costs

Central banks that hike borrowing costs too aggressively to tame supply-driven inflation risk exacerbating price gains, according to Nobel laureate economist Joseph Stiglitz.

As activity restarts following pandemic lockdowns and countries like China struggle to restore normality, the global economy is enduring something “we’ve never done before,” the Columbia University professor said in an interview in Lindau, Germany.