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Lead story Forex High Public Debt Challenges Central Banks' Inflation Control Strategies High public debt has sparked concerns about its impact on central banks' ability to control inflation. While central banks can still manage inflation, they must consider that higher debt raises the interest rates needed for price stability. Economists debate whether monetary or fiscal policy primarily drives inflation, with household behavior playing a key role. Research suggests public debt could reach about 5.4 times annual GDP before causing uncontrollable inflation. Central banks should monitor debt levels and adjust interest rates preemptively to maintain inflation control. Sentiment -2 Clout 95 Speculation 3 EUR

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