Sharply elevating central financial institution rates of interest would possibly show catastrophic, somewhat than simply inappropriate, as an answer to the present inflationary surroundings. That was the message lurking within the speech of one of many Financial institution of England’s financial policymakers, Silvana Tenreyro, final week. It’s exhausting to disagree. Whereas inflation is hurting the poor disproportionately due to their low incomes, price hikes are a “cure” that’s worse than the illness.
The Financial institution regards rising unemployment as…
