ECB Lane: Hold-steady approach reinforced if bottlenecks are primarily external in nature

<p>ECB Chief Economist Philip Lane said in a blog post, “in terms of inflation dynamics, the relative price dislocations associated with bottlenecks are intrinsically short-term rather than permanent in nature.” Further, “initial increases in relative prices of categories that experienced high demand and/or low supply can be expected to level off or even reverse.” Additionally, […]</p>
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