ECB’s Knot: Trade war a stagflationary shock, inflation impact will rise over time

Dutch ECB Governing Council member Klaas Knot warned today that the escalating trade war constitutes a “negative supply shock” and should be considered “stagflationary” in nature. Knot also cautioned that as time progresses, the economic impact is more likely to “more inflationary rather than deflationary”. ECB’s priority, he said, is to monitor how and when […]

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