Central banks’ independence is harder to justify after such a failure of “analysis, forecasts, action and communication,” Allianz SE’s chief economic adviser, Mohamed El-Erian, tweeted in October.
The tragic result, he says, is “the most front-loaded interest-rate cycle that we have seen in a very long time
When reckless lending eventually blew up the housing and credit markets in 2008, then-chair Ben Bernanke deployed the Fed’s balance sheet in ways that hadn’t been seen since the Great Depression.
Their coordinated response in March 2020 put a floor under asset prices and kept bond yields low, helping governments fund the massive spending needed to support millions of unemployed people.
While central banks in most modern economies enjoy day-to-day independence, their mandates are set by democratically elected governments.
Bloomberg 20 November 2022
Om centralbankerna inte kunde få upp inflationen från noll till två, hur kan då någon tro att de inom rimlig tid skall få ner den från 8-10 procent till två?