The traditional remedy for traditional inflation is to raise interest rates: higher interest rates mean lower economic growth, so the economy cools down and the whole spiral effect disappears. Not without a lot of misery, by the way, because it is often accompanied by unemployment and the collapse of companies.
Relative to the '70s, we do have something different, you guessed it: the Euro. Because inflation has not been caused by very high growth and the economic outlook is not very good, there is a good chance that the ECB will keep interest rates low.
At least for the next few months: no change in interest rates was announced last Thursday. With all its positive and negative consequences, such as impact on state budgets, pensions and investments.
