{
  "id": 1647185,
  "title": "When it comes to inflation, ‘in’ is better than ‘out’",
  "url": "https://urgent.news/2026/08/18/when-it-comes-to-inflation-in-is-better-than-out",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T06:01:04.000Z",
  "source": {
    "name": "Klement on Investing",
    "slug": "klement-on-investing",
    "url": "https://klementoninvesting.substack.com/p/when-it-comes-to-inflation-in-is"
  },
  "original_language": "en",
  "account": "Countries outside the Eurozone possess an advantage when it comes to inflation management. Unlike the European Central Bank (ECB), which must decide on monetary policy for a diverse set of nations, countries outside the Eurozone can tailor interest rates to suit their unique requirements. Consequently, they should have fared better during the 2022 inflation spike and are expected to perform better in the present situation. Researchers Rainer Martin and Piroska Nagy Mohácsi from the London School of Economics examined the experiences of the Visegrad group, comprising Poland, Hungary, Czechia, and Slovakia, during the 2022 inflation surge. The Visegrad countries share several economic similarities, such as their participation in the single market, reliance on outsourced manufacturing from Germany and other EU industrial leaders, and cultural and political affinities. The only notable distinction is that Slovakia adopted the Euro in 2009, granting it a unified monetary policy under the ECB, whereas the other three nations retain their individual currencies and autonomous monetary policy. This difference proved advantageous, as Slovakia's central bank raised interest rates more rapidly than the ECB, potentially curbing the inflation spike. Furthermore, possessing their own currency could have been beneficial, as a devaluation of their currency against the Euro may have stimulated exports and economic growth. However, despite this autonomy, Slovakia experienced higher inflation rates compared to the Visegrad countries that maintain their own currency. Moreover, Slovakia's government deficits and GDP growth trends were nearly identical to those of Poland and Czechia, with Hungary exhibiting larger deficits and slower growth. The analysis indicates that Poland, Czechia, and Hungary should have experienced less inflation and better economic performance during the 2022 inflation spike and in the current climate.",
  "summary": "One of the advantages that countries outside the Eurozone have is that they can control their monetary policy.",
  "key_points": [
    "Countries outside the Eurozone can set interest rates independently, unlike the ECB.",
    "Slovakia raised interest rates faster than the ECB, potentially reducing 2022 inflation."
  ],
  "editors_take": "The finding that Eurozone membership did not guarantee better inflation outcomes suggests that a one-size-fits-all monetary policy may be less effective than tailored interest rates in managing economic shocks.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}