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Monetary policy in times of trouble
From independenteconomics.substack.com
Greetings from Berlin, the high temple of price stability. My note today is about monetary policy in times of trouble. The geopolitical world has changed, and one must assume that supply and price shocks will become increasingly frequent, and at times possibly severe. This will make it difficult – if not impossible − for the world’s central banks to deliver steady inflation during the years ahead. Pretending otherwise would serve only to undermine their credibility. Steady inflation is both the objective of inflation targeting and a prerequisite for its success, because of the way inflation expectations are ... (full story)
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