Energy markets: shock, economic fallout and policy response

BIS Bulletin  |  No 64  | 
13 December 2022

Key takeaways

  • Commodity price increases this year have been larger, more persistent and more broad-based than similar past episodes of commodity price rises.
  • The recent commodity price surge has exerted an overall stagflationary effect on the global economy, lowering growth and raising inflation.
  • Given already high levels of inflation and of government debt, a coherent monetary and fiscal policy mix is needed even more than usual to navigate the policy challenges.