Much ink has been spilled in recent weeks over the US Federal Reserve’s announcement that it will now, in effect, target inflation over the whole cycle. The message from the rest of the developed world’s central banks is similar: Most say that if necessary they’ll do more to get inflation back on target.
This week Christine Lagarde, president of the European Central bank (ECB), laid the groundwork for following the Fed. The ECB will now also allow inflation to overshoot on the upside. Presumably such comments are meant to reassure the handful of people still worried ...
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First Published: Sat, October 03 2020. 02:22 IST
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Inflation targeting is a stupid policy - Business Standard
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