The risks of policy normalisation – in particular the interaction between rate hikes and quantitative tightening – are discussed in Panetta, F. (2022), “Normalising monetary policy in non-normal times”, speech at a policy lecture hosted by the SAFE Policy Center at Goethe University and the Centre for Economic Policy Research (CEPR), 25 May. 4.
I, again, express my solidarity, my compassion, and my sincere condolences to the families and friends of the victims. I would also like to mention that we should shy away from drawing premature conclusions about whether the terror attacks will have any economic impact. We have no indication of any economic pessimism as a result of the Paris attacks, let alone weaker hard data.