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Dario Perkins questions why the European Central Bank (ECB) raises interest rates when energy prices rise and links this behavior to lessons from the 1970s.
Perkins highlights how the Bundesbank's longstanding approach to inflation, rooted in Germany's refusal to accommodate oil shocks, continues to influence ECB policy today.
Perkins has recently commented on shifting labor conditions, noting clear signs of jobs market reacceleration at the beginning of the year. He has also described the current corporate earnings season as highly unusual, citing distinct recent chart patterns. These observations add further context to his views on central bank policy reactions.