Inflationary pressures persisted in leading advanced economies in December, with the year-on-year increase in US consumer prices reaching a four-decade high of 7%, and eurozone inflation climbing to 5% – its highest level since the introduction of the euro. While debate continues as to the right policy response, the current episode will doubtless hold important lessons for the US Federal Reserve, the European Central Bank, and economic forecasters alike. Gunther Schnabl in debate with other experts.
