Doing so, they say, will strengthen central banks at a juncture when tightened policy and interest rates put them under increasing political pressure. Central bank economic models designed for a low inflation world, coupled to a data-driven approach (i.e. Central banks need to return to their core goals, of price stability, economic stability, and financial stability. An extended period of aggressive central bank interventions and unconventional measures to widen and deepen central bank actions in the economy should not become the norm. We would be better off too if central bankers and the public took a more limited view of central banks’ tasks, abilities, and effectiveness.

Source: The Herald December 04, 2023 12:28 UTC