The contagion became globalized because the investors were not only US companies. European banks, and emerging market institutions, in particular, bought just about as many as US banks, which led to contagion around the globe. Perhaps, a brief synopsis of the stages of the global financial meltdown would suffice in explaining the origin of the global meltdown within an appropriate context.
The Eurosystem staff projections published last December indicated that inflation would be above 3 per cent on average in 2022, reflecting the sharp rise in energy prices. It was, therefore, expected to decrease over the course of the year, eventually returning to just below the ECB’s objective of 2 per cent.