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Why Economics Haven’t Slowed More Despite High Interest Rates


Why Economies Haven’t Slowed More Since Central Banks Hit the Brakes Story by Nick Timiraos, Tom Fairless • 17h ago The world’s central banks raced at an extraordinary pace over the past year to cool inflation, but it hasn’t proved enough—yet. Economic growth remains mostly solid and price pressures strong across affluent countries despite sharply higher interest rates. Why haven’t growth and inflation slowed more? Much of the explanation lies in the pandemic’s weird effects and the time it takes for central-bank rate increases to curb economic activity. Additionally, historically tight labor markets have fueled wage gains and consumer spending. First, the…

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