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Daniel Kral highlights the economic contrasts among several European countries. Switzerland continues to experience a high price level but maintains low inflation, which peaked at 3.5 percent in 2022 versus 10.7 percent in the Eurozone.
Denmark and Sweden took early policy steps by cutting taxes on electricity and food, with these measures planned before Iran-related developments. Meanwhile, Czechia has seen its price level rise about 40 percent since 2021, compared to a 23 percent increase in the Eurozone. Although inflation in Czechia has recently moderated, it is expected to rise again.
Daniel Kral has previously tracked major shifts in European economies. He noted that German industrial output in March fell to 17.5 percent below end-2017 levels. In separate analysis, Kral observed the Riksbank reduced its balance sheet faster than the Bank of England.