Maybe tapering and reduction of balance sheet of cental banks are next instruments to control inflation, but from 2016 we has been in era of negative real interest rate (rising prices of commodities has showed it).
I think we should observe official inflation level, because very often its level fall before official stocks crash (in 2008 CPI was sharply falling about 3 months before Lehman bankruptcy).
Maybe tapering and reduction of balance sheet of cental banks are next instruments to control inflation, but from 2016 we has been in era of negative real interest rate (rising prices of commodities has showed it).
I think we should observe official inflation level, because very often its level fall before official stocks crash (in 2008 CPI was sharply falling about 3 months before Lehman bankruptcy).
https://www.ecb.europa.eu/stats/macroeconomic_and_sectoral/hicp/html/inflation.en.html?hasFlash=true& https://pl.tradingeconomics.com/united-states/inflation-cpi
Good point. I'm not sure what the central bank is going to do since they're backed into a corner.