Inflation reverberations

The post-Covid inflation surge and accompanying jump in interest rates was a global phenomenon. There were a few important exceptions, notably China and Japan, but almost all other economies experienced broad and sustained price increases, as well as higher interest rates. European countries such as Sweden and Switzerland abandoned negative interest rates, a dramatic reversal after years of sub-zero policies. Some emerging markets hiked early and aggressively, both in response to domestic inflation and to get ahead of the US Federal Reserve. American interest rates, after all, act as an irresistible gravitational force for global markets.