Fact: inflation around the world is on the rise.
And as predicted, so are the calls on central banks to quickly intervene in an attempt to wrestle inflation back to some agreed-upon target level. Indeed, there exist among mainstream economists a quasi-unanimity that this is the proper policy route to follow: several increases in the rate of interest should eventually have an impact on those interest-sensitive components of aggregate demand to finally slow down economic activity in the hope that inflation will somehow float back to its target of, say, two per cent, at a minimal cost to society as a whole.
