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Pandemic and Ukraine have altered Europe’s inflation dynamics – IMF
Fund stresses policy-makers face tough trade-offs from high inflation and recession risks
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The coronavirus pandemic and the Russian invasion of Ukraine may have changed inflation dynamics in Europe, the International Monetary Fund said on October 23.
Policy-makers in the eurozone and other major European economies confronted a decade of below-target inflation. But now they face tough trade-offs involving a tighter monetary policy and high recession risks, the IMF notes.
Rising shortages in labour and inputs are “contributing notably to the recent high-inflation episode”, says Alfred
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