- Recent good news on inflation sparks debate on central banks' influence.
- Higher interest rates may not be responsible for progress on inflation.
- Inflation fell in the US and eurozone, while unemployment rates remained steady.
- Competing explanations: supply shocks vs. monetary policy.
- Monetary policy affects behavior and demand for goods and services.
Why the Drivers of Lower Inflation Matter
Competing effects of central banks, healing supply chains affect recession odds
Nick Timiraos and To
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