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Central Bankers Reconsider Inflation Targets They Can’t Hit
Central bankers are proving to be the gang that can’t shoot straight. A quarter of a century since New Zealand opened the era of inflation targeting, policy makers from the U.S., euro area, U.K. and Japan are all undershooting their consumer-price goals. Of the Group of Seven, only Canada is currently meeting its mandate. Rather than lowering their sights to make things easier, the misses are fanning calls for targets to be increased from the 2 percent most aim for to perhaps as high as 4 percent. While a similar idea was pitched five years ago by International Monetary Fund economists led by Olivier Blanchard, and ... (full story)
