Central banks in the United States, the UK, and Europe are increasingly shifting their monetary policy guidance to an explicit stance to let inflation run above their inflation target for a while before they react with higher interest rates. Some people who are afraid of runaway inflation criticise central banks for this commitment to being “behind the curve”, claiming that the consequences for the economy could be devastating.
Why central banks should be “behind the curve”
Why central banks should be “behind the…
Why central banks should be “behind the curve”
Central banks in the United States, the UK, and Europe are increasingly shifting their monetary policy guidance to an explicit stance to let inflation run above their inflation target for a while before they react with higher interest rates. Some people who are afraid of runaway inflation criticise central banks for this commitment to being “behind the curve”, claiming that the consequences for the economy could be devastating.