The effects of Monetary Policy lag several quarters after policy moves are implemented

Former Fed Chair Alan Blinder’s Econ 101 taught us that
“The effects of Monetary Policy lag several quarters after policy moves are implemented.”

Ergo: rate hikes don’t immediately quell inflation. It takes several quarters for the symptoms of monetary policy manifest in the measurable numbers.

People seem to think that after a 14 year binge of quantitative easing — the last two of which had turbo easing —
That all of a sudden the overheated economy and resulting inflation will come off this high.

Econ 101 suggests we will see a movement in the observable effect of monetary moves come spring 2023.

#growthequity #privateequity #econ101