MR PUTIN AND THE CHRONICLE OF A NORMALISATION

The accommodative stance in monetary policy, as well as the impetus from previous monetary and fiscal interventions seem like to have stoked inflation to a higher level that might otherwise have been the case following the shock of a war on the European continent. [...] The emerging prospect of a prolonged war of attrition in Ukraine has further exposed some of the limitations of the economic settlement that was established following the end of the Cold War in 1991. [...] But could the change in the forces acting on the global economy in light of Covid and the war, allow monetary policy to escape the bind? The War and Easy Money There has been much written on how to escape from a growth or liquidity trap or what popularly came to be known as a secular stagnation. [...] The Monetary Policy Stance The final part of the jigsaw is the monetary policy stance as we have come out of the Covid cloud. [...] Conclusion One of the consequences of the invasion of Ukraine is that over a decade after we entered the period of ultra-low or unconventional monetary policies, the combined shock to the fiscal positions and to inflation have finally jolted policy rates back into historically recognisable territory.[13] The good news story would involve a more secure deposit base, under these higher short term in.