Monetary aggregates are back in fashion

Monetary aggregates, used by the Bank of England and the Bundesbank in the postwar period as bellwether of price pressures but largely ignored in recent decades, are back in fashion

Money matters, but it is not everything — setting policy on the basis of aggregates proved tricky and they were less reliable indicators of inflation than hoped.

Deflation remains the greater threat right now. But...

FT Editorial 14 August 2020


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