Lessons for monetary policy from the latest inflationary-disinflationary episode

Abstract

In the last few years, central banks across the globe have faced a formidable surge in inflation, stemming from a succession of supply and demand shocks. In response, they have embarked on an extraordinarily sharp monetary policy tightening cycle. In his talk, Governor Hernández de Cos addresses the lessons learned so far from the inflationary-disinflationary episode in the euro area and the European Central Bank’s response to it.