It’s the U.S., Not Europe’s Banking System That’s a Concern, Top Economists Say

“We’re still fighting inflation, but, at the same time, we’re fighting these uncertainties in the banking sector. All of the central banks will try to distinguish between the two and say, on the one hand, we can use certain policies to deal with the financial instability. On the other hand, we can use interest rates to fight inflation. But those two will get muddied, and I think, inevitably, financial instability will become the one that’s dominant.”