We're Not in a Currency War, Says RCB's Lignos

The transcript discusses the concept of currency wars, highlighting that current central bank strategies differ from traditional currency wars as they focus on strengthening currencies to combat imported inflation. It examines global inflationary pressures and how central banks, including the Swiss National Bank, are raising interest rates to address these issues. The European Central Bank faces challenges in managing inflation due to diverse economic conditions across Europe.

In what ways might the European Central Bank (ECB) respond to tightening from other central banks?

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What challenges do central banks face when making monetary policy for diverse economies?

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