Geldcast Update: central banks in a stagflation dilemma

The economy is weakening noticeably in many areas. At the same time, inflation is still clearly too high. This poses a dilemma for central banks: should they continue to raise interest rates to fight inflation or should they lower them again to support the economy?

This content was published on October 31, 2022 minutes

A weak economy with sharply rising prices at the same time: This is every central banker's nightmare. But in the United States, the United Kingdom and the Eurozone, that is exactly what is happening again.

In the US, the economy has hardly grown since the beginning of the year; nevertheless, inflation is still far too high at 8.3%. The situation is similar in the UK: There, the economy is even shrinking, while inflation is a whopping 10.1%. And in the Eurozone, too, there is a threat of weak growth next year, with unabated high inflation.

The problem is that the central banks cannot bring inflation down and support the economy at the same time. How could it come to this? And how will the central banks deal with stagflation? Find out this and more in the latest Geldcast update.

External Content

From stock exchanges and bitcoin to inflation and monetary policy – the Geldcast update features the latest from the world of international finance. Clear and entertaining for everyone who wants to stay up to date. The podcast is hosted by monetary economist and business journalist Fabio Canetg.

Subscribe to the Geldcast update in English on YouTubeExternal link. And you can find many more episodes in German on iTunesExternal linkSpotifyExternal link, or wherever you get your podcasts. 

The SWI Geldcast

Author Fabio Canetg completed his doctorate in monetary policy at the University of Bern and the Toulouse School of Economics. Today he is a lecturer at the University of Bern.

As a journalist, he works for SRF Arena, Republik Magazin and SWI He hosts the monetary policy podcast "Geldcast".

End of insertion

In compliance with the JTI standards

In compliance with the JTI standards

More: SWI certified by the Journalism Trust Initiative

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at

Share this story

Change your password

Do you really want to delete your profile?