By acting swiftly now we can prevent a Volcker shock

Olli Rehn, Governor Bank of Finland in this voxeu article writes on how we can avoid the Volcker shock:

There have been voices declaring – especially in retrospect – that the ECB should have hiked its rates earlier, and that frontloading should have been more forceful. This column argues that while there may be some truth in this argument, medium- and longer-term inflation expectations are still relatively well anchored and the task now is to maintain this by making strong enough moves so that a highly restrictive monetary policy shock can be avoided in the future.