Macro Analysis /
Global

Sunday Wrap

    Erik F. Nielsen
    Erik F. Nielsen

    Global Head of CIB Research

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    UniCredit
    4 September 2022
    Published byUniCredit
    • I’ll elaborate on this critical observation that European inflation is predominantly, if not exclusively, the result of a permanent energy price shock, which stands to cost the EU economy more than 3% of GDP per year. This calls for bold strategic and fiscal policy action with a more careful role to be played by monetary tightening.
    • Bold action requires great political courage. Mikhail Gorbachev, who died this past week, certainly had that in spades. I’ll summarize what I think he unleashed, why and how it shapes today’s world.