Jackson Hole Should Be a Mea Culpa for Central Bankers
Policy makers need to acknowledge their past mistakes, as well as detail the trade-off between growth and inflation.
At the European Central Bank’s forum in Sintra, Portugal in June, Powell admitted that "we now understand better how little we understand about inflation.”
More candor is needed now on how the inflationary monster was so underestimated, and how far policy makers are willing to go in sacrificing growth — and jobs — to tame it.
The global central bank reaction to the pandemic prevented a major recession, but the stimulus was left in place for far too long.
Marcus Ashworth Bloomberg 25 augusti 2022
Fed Policy Framework built for last war still yields lessons for the next
Unveiled at the Fed’s Jackson Hole forum in August of 2020, after an 18-month review, the new approach was aimed at a specific peril: How to beat the weak inflation that had long dogged central bankers.
Bloomberg 25 augusti 2022
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