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Monetary Targets and Tactics
As many employees do at the start of the year, last week I sat down with my boss to set targets for 2018. He insisted on keeping many of the objectives he had established last year: forecasts for all variables must be precisely accurate, I must present our commentary in six languages, and standing ovations are expected at all presentations. Standards are important, but these may be set too high. Most central banks have targets, too. And judged solely by the numbers, monetary policy would be assigned a substandard rating. Going forward, the question for monetary policy is whether to adjust targets or work harder to ... (full story)