9h ago•4 min read
Oil, war and the limits of monetary policy
Summary
Geopolitical tensions are causing macroeconomic shocks- but how will central banks respond to these external supply disruptions?
The US, Israel, and Iran are embroiled in a confrontation that's quickly becoming a macroeconomic shock- with oil at its center. As prices rise and confidence in supply weakens, the shock spreads into the broader economy- forcing monetary policy into the picture.