-
Central Banks Search for Lessons From the Great Inflation Outbreak
After the most aggressive monetary-tightening campaign in four decades, academics and economic practitioners are running autopsies on what could have prevented the cost-of-living crisis and how to ensure the same mistakes won’t be repeated. Markets have scrambled to price in high-for-longer interest rates, with a new war in the Middle East adding yet more risk to an already uncertain outlook confronting central bankers as they gather for their penultimate meetings of a tumultuous year. The policy navel-gazing is centering around three debates. How much flexibility central banks can allow in reaching their inflation ... (full story)