In the Thursday instalment of Business Arena, we discuss the global inflation and energy shortages throughout Asia.
The big three, whose leaders met in Frankfurt this week, are changing their tune on inflation. Since 2020, some USD 11 trillion has been pumped into the economy by the Fed, the Bank of England and the European Central Bank (ECB), together with the Bank of Japan in long-running quantitative-easing campaigns.
Meanwhile, in the ECB, interest rates have been at zero or below since 2014. Christine Lagarde, the institution’s head, says they got some of their inflation sums wrong.
Energy shortages in Asia
After the winter heating season saw massive price hikes worldwide because of the Russian invasion of Ukraine, now a new energy shortage is causing headaches throughout Asia. A heatwave is putting cooling costs up and grids can’t cope with demand.
To discuss the rising inflation in Europe, we were joined by Jakub Rybacki from the Polish Economic Institute.