Pressure is mounting on Christine Lagarde, the European Central Bank chief, to get a grip on soaring prices on the Continent as inflation hit its highest level since the birth of the euro.
Figures showed eurozone inflation hit 4.9pc in November, far worse than the 4.5pc expected, as energy costs jumped a record 27pc compared with last year.
Ms Lagarde has insisted that the inflation surge is a one-off but that stance is coming under increasing pressure from hawks such as Germany, where prices are rising at the fastest pace for almost 30 years.
Sure, they’ve been trying to create inflation for a decade now. But it’s one of those strange beasts – hard to create and perhaps harder to tame once created.
As so often, St Milt was right:
The Fed choosing to treat inflation as non-transitory is exactly the reason inflation will ultimately be transitory.
This paradox is known as Milton Friedman's thermostat.https://t.co/wtnnX4HiDP
— Noah Smith 🐇 (@Noahpinion) December 1, 2021