How to win the battle against inflation

Lessons from Hikelandia, home to the world’s most dogged central bankers

People visit Trolltunga (‘Troll tongue’) rock formation in Norway — Image: Getty Images

Jul 6th 2023

Over the past year we have examined the economic fortunes of Hikelandia. In this group of eight countries—Brazil, Chile, Hungary, New Zealand, Norway, Peru, Poland and South Korea—central banks have fought inflation with unparalleled aggression. Hikelandia started raising interest rates a whole year before America’s Federal Reserve, putting it well ahead of the curve. Since then its average policy rate has risen by more than seven percentage points, compared with around five for the Fed. Yet for months Hikelandia’s central bankers had little joy: inflation kept rising.

This article appeared in the Finance & economics section of the print edition under the headline “After the summit”