How Will Central Banks React to Russia's Invasion of Ukraine?

The video discusses inflation as a primary concern for central banks in 2022, with potential impacts from the Ukraine situation on commodity supply. It explores the Federal Reserve's and ECB's monetary policy decisions, including interest rate hikes and market reactions. The ECB's past mistakes in 2008 and 2011 are highlighted, along with the Fed's 2018 error. The video suggests a cautious approach to interpreting market prices during macroeconomic shocks.

What is the significance of the term 'normalizing monetary policy' in the context of the text?

What historical mistakes does the ECB remember that may influence its current decisions?