Outgoing MPC member Danny Blanchflower is taking no prisoners on his way out the door, saying the institutional framework for inflation targeting has been found wanting. One need look no further than the inflation spike last summer amid a global economic slowdown to see he has a point.
Just as Blanchflower was shooting down the notion of inflation targeting, St.Louis Fed president Bullard calls for the Fed to adopt an explicit inflation target. His timing could not be worse, on several levels.
EUR/USD trades at 1.3515 after bouncing from the 1.3480s with an assist from the IMF.
