The latest inflation data from the United States suggests things may get worse before inflation begins to retreat.
This finding probably also applies to the euro zone, and all the more if less gas flows from Russia to Europe in the future.
The financial markets are reacting violently to the deterioration in the macroeconomic environment.
In the United States, short-dated bond yields are rising faster than long-dated bond yields: the market is preparing for a policy of sharp interest rate hikes by the Federal Reserve, which could result in a recession in the United States in the coming year .
Widespread uncertainty is also putting pressure on stock and crypto asset markets.
Bond yields are also rising in Europe, particularly in Italy.
The yield on ten-year Italian government bonds has risen to 4 percent within a short period of time.
Concerns can be heard immediately, not least from the financial sector, which is suffering from the price losses on the markets, that a new euro crisis is approaching.
Therefore, the European Central Bank must come to the aid of countries with high bond yields with a new purchase program.
In central banks, in the offices of analysts and economists, in politics and in the media, there are many people today who have no experience of high inflation rates.
You grew up in a world of largely stable prices, in which central banks acted to stimulate the economy, to stabilize financial markets, to finance states, to promote green monetary policy and to promote fair distribution.
However, high and stubborn inflation is not compatible with a monetary policy that aims at several targets at the same time.
The Fed's double mandate – monetary stability and high employment – is just as bad as the idea that the ECB can fight inflation and control bond yields at the same time.
Their mandate is very clear: monetary stability.