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11 sats \ 0 replies \ @WaraiOtoko 11 Nov 2022 \ on: EU Says Recession Is Here and Inflation Shock Will Linger On bitcoin
The Taylor rule in economics says that if you want to fight inflation with interest rates, then the interest rate needs to be higher than the rate of inflation. For the ECB that would mean that interest rates would have to be raised to 15-20%, instantly bankrupting the entire EU. I don't think they actually have any sort of serious plan to deal with this and are just waiting it out, hoping the inflation will go away on it's own.