–Notes Trend Down In Core Inflation; Declining Money Growth
–Central Banks Responded Initially – But Then They Stopped
LONDON (MNI) – Bank of England Monetary Policy Committee Member
Adam Posen has questioned whether central banks are being sufficiently
held to account for their policy actions.
In comments at a conference in Vienna, Posen made the point that
core inflation in the EU, US and UK is trending down and that money
growth is declining, but central banks are not acting.
“Core inflation has been decreasing … Central banks responded
initially, but then they stopped,” Posen said.
“I’ve argued that we’ve trended down and are still trending down.
Money growth has been declining as well. If all these indicators are all
acting in one direction, and central bankers aren’t addressing it, then
you have to ask if their feet are being held to the fire and (if they
are) not being held responsible”.
Posen said that he was ‘agnostic’ on the issue of recent exchange
rate tensions, noting that there was a downside and an upside to the
recent fall in the US dollar:
“…Let’s take as given, the Fed does more QE and the ECB doesn’t.
People have been concerned about the effects on the exchange rates. I’m
generally somewhat agnostic. One the one hand I don’t like exchange rate
conflict, on the other hand if we accept … that global imbalances
caused even partly the global crisis, doesn’t it make sense to unwind
the imbalance ?”
–London newsroom: 4420 7 862 7492; email: dthomas@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]
