Monahorns
10,000+ Posts
Beware of premature celebrations on inflation
"The analysis in our paper finds that inflation is most often persistent, that it is critical not to loosen policies prematurely in response to temporary declines in inflation – meaning interest rates will likely need to remain high for longer – and that while fighting inflation often involves short-term pain, this is likely small in relation to the costs of persistently high inflation."
This is the correct view