Inflation targeting should be retained but enhanced, says Bank of England economist Dale. As it is currently operated, inflation targeting is insufficient.
Robotic inflation targets proved very poor monetary policy mechanism a year ago as inflation ramped higher and economic growth collapsed simulateously. Most central banks take liberties with their inflation targets given their “medium-term” focuses, so it will be interesting to see if central bankers can come up with any more tangible monetary methods other than the seat-of-the-pants methods used today.
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