It's amazing people still don't get the problems central banks have created by essentially giving away free money for a decade.
There are whole industries, like crypto, that exist on free money and will collapse very quickly as this era ends and that will cause systemic shocks. If you purchased bitcoin less than 6 months ago, you've lost half your money now. If you thought Netflix was the future 6 months ago, you would have lost 72% of your money to date.
Central banks say they will tackle 10% inflation by raising interest rates to 2.5%, yet we won't get a recession and all will be well with the world by 2024. Just think of the nonsense in this statement. That is a magic trick Harry Houdini couldn't pull off.
Three options from here,
1 - Central banks get serious on tackling inflation and continue monetary tightening, interest rates beyond 5%, etc in the next 12 months, this will surely trigger an asset price collapse, place big interest charges on the government debt and trigger a big recession as no one can afford to service the debt at this level because we gave away free money for 10 years.
2 - As rates hit just 1% or over, central banks (or markets figure out for them), that monetary tightening, even at this level, is triggering a recession they didn't think would happen, they freak and pivot policy and start loosing monetary policy, only this will spiral inflation ever further. We end up with the nightmare of stagflation.
3 - Central banks have to come up with some convoluted plan to kick these systemic problems down the road. They'll introduce a CBDC with currency revaluation, or some other complex way to make everyone poorer while they are not looking. I actually think this is where we end up.
The point I'm making is no good options from here. Whether an escort charges an extra £20 an hour will become the least of everyones concerns within a year. The financial reality will resolve most of the issues raised for us.