ECB's Knot: ECB should act in the face of high inflation

ECB's Knot says:

• ECB should act in the face of high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• Gradual but timely normalization is needed
• High inflation and not entirely due to supply shock
• Demand has recovered far quicker than expected

The comments are in line with his comments from last week, when he said:

• Gradualism is not a mistake
• We can afford to be gradual as long as inflation seen converging towards target
• Calls for APP program to be wound down as quickly as possible
• Does not see QE unwinding sooner than Q3; more likely early Q3 than late
• Doesn't see recession, sees 'slowflation'
• Rate hike can come in Sept, Oct or Dec
• Likelihood of second round effects is becoming larger