Energy markets: shock, economic fallout and policy response

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.

Annex

The views expressed in this publication are those of the authors and not necessarily those of the BIS.