In such a situation, it is very difficult to assess the level at which inflation will settle when the extra price increase generated by the government no longer has an effect. The various answers to this question also contribute to the division in the Monetary Council. In my opinion, when inflation expectations, i.e.
3  While physical risks pose a serious threat, transition risks may be even more important for financial institutions. Transition risk could also be called the risk of success. Take for example the commitment made in Paris to limit global warming to well under 2 degrees Celsius.