Energy markets: shock, economic fallout and policy response
BIS Bulletin
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No
64
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13 December 2022
Key takeaways
- Commodity price increases this year have been larger, more persistent and more broad-based than similar past episodes of commodity price rises.
- The recent commodity price surge has exerted an overall stagflationary effect on the global economy, lowering growth and raising inflation.
- Given already high levels of inflation and of government debt, a coherent monetary and fiscal policy mix is needed even more than usual to navigate the policy challenges.