Stubborn inflation and recession risk in Europe: correlation with the US economy

From an economy maintaining negative interest rates for many years, ECB has had the fastest interest rate hiking cycle in history: from -0.5% to 3.5% in 1 year. Even when Fed paused rate hikes in 06/2023, ECB still maintains a continuous rate hiking stance.

However, despite having a hawkish interest rate policy surpassing even Fed in June, ECB maintains a diverse monetary policy towards member states: simultaneously implementing QT and QE for different member countries. 

• So, how tense is the current inflation situation in Europe to make ECB react so strongly?

• How complex is ECB's interest rate and monetary policy unfolding? Will it have any impact on the US economy?

• Will Europe enter a recession?

  Video: The truth about economic recession?

Viet Hustler will return to Europe in this week's macroeconomics column, to answer the above questions.

Inflation situation in Europe (compared to the US)