News Analysis Inflation is swelling across both advanced and developing economies, impacting a wide range of goods and services in the global marketplace. What does this mean for monetary policy in 2022? Financial markets are betting on tighter monetary policy next year as prices continue to spike in multiple sectors. Analysts anticipate a steady withdrawal of stimulus and relief efforts, from gradual interest rate hikes to modest trimming of quantitative easing programs. How much of an effect this will have on ballooning inflation is unclear. Still, some experts assert that a return to monetary normalcy will be a challenge after pumping trillions of dollars into the economy. The Federal Reserve has initiated tepid tapering endeavors. The Bank of England (BoE) has signaled that it is preparing for rate increases. The European Central Bank (ECB) has been pushing back against tightening. The Bank of Canada (BoC) appears confident enough in the …
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