Notes Europe is harder hit due to energy dependency, and the ECB may need to be more hawkish. This relative vulnerability and potential policy divergence could support the dollar.

This is a stagflationary impulse... Prices go up Explicitly states the shock causes prices (i.e., oil/energy) to rise.

Argues the stagflationary shock creates upside inflation pressure from an already high starting point (3% core PCE), which should put upward pressure on yields, especially as the ECB/BoE have a more hawkish inflation-only mandate.