The monetary authorities have recently begun to raise interest rates in unprecedented steps. The declared aim is to contain the ongoing retail price increases. The reactions by the monetary authorities can be interpreted as an indicator of tightened monetary policy.
One could argue that the specific objective is to disentangle the links between the financial sector and the development of the real economy.
LET US START WITH A PUZZLE: What do the two rather tricky charts below show? Without specific information one cannot interpret the two-inverse developments. In a sense they stand for the situation we are currently facing, while writing about the outlook for the year just started.