What if euro-area inflation stays stuck near 9% and fails to converge to target?
Euro-area HICP stays stuck near 9% as energy and wage pass-through entrench, mirroring the EBA 2023 adverse path where inflation fails to converge to target over the three-year horizon.
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The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (electric blue) over time vs the market's (Polymarket, amber), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. Loading the probability audit trail…
What it would mean
If this plays out, it is a risk-off shock. Euro-area HICP stays stuck near 9% as energy and wage pass-through entrench, mirroring the EBA 2023 adverse path where inflation fails to converge to target over the three-year horizon. The trigger decomposes into signed root‑shocks — European energy ▲ · Inflation expectations ▲ · Inflation surprise ▲ · Recession signal ▲ — which propagate through our causal graph to the markets below.