Everything on Macroeconomic Policy & Risk Management

Central banks face a critical dilemma responding to geopolitical supply shocks: hiking rates to curb second-round inflation risks triggering a demand-side recession, while holding steady may allow price pressures to embed.

Impact: Businesses must stress-test cash flows against stagflation scenarios and prepare for prolonged monetary tightening despite supply-driven price spikes.

— from Navigating Energy Shocks, Monetary Policy, and Industrial Resilience · Mikroökonomen a.k.a. Mikrooekonomen· Mar 25, 2026