Iran War Forces Central Banks to Consider Yet Another Supply Shock
Policymakers are united on one thing: The impact on growth and inflation will all depend on how long the war lasts.
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I’m Chris Anstey, a senior economics editor in Boston, and today we’re looking at central bank implications from the world’s latest supply shock. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here.
This has become the decade of supply shocks, from Covid to the Russia-Ukraine war to mercantilist trade actions to, now, a Middle East regional war. With the global energy market upended, central banks are confronted again with the question of whether to mind the inflation or the growth impact.