On February 24, the world watched as Russian tanks crossed the border into Ukraine, marking a steep escalation of a war that has been ongoing since Russia annexed Crimea in 2014. The invasion deepened geopolitical fault lines worldwide and sent shockwaves through the global economy, impacting almost every aspect of central bank policy. As the conflict continues to play out, central bankers are coming to terms with an inflationary threat that seemed in recent years to have been banished.

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