Bob Elliott
· Nonconsensus
· March 20, 2026 at 10:04
· ⏱ 4 min read
| Read on Substack ↗
Summary
The author argues that a recent oil shock has eliminated the possibility for central banks in the developed world to maintain easy monetary policy. With inflation already elevated, policymakers are now being forced to pursue tighter policy in response.
•An oil shock has dashed hopes that persistent high inflation would resolve itself naturally.
•Developed world central banks are now compelled to implement tighter monetary policy.
•Most central banks were already facing inflation above their mandates before this recent shock.