The Fed and other central banks had been trying and failing to push inflation rates to 2%.

 There were serious questions about whether central banks could even create inflation because there had hardly been any inflation for some 25 years. The expansionary fiscal and monetary policies coming out of the 2008 financial crisis had not generated a rise in consumer prices above the 2% target.

 “They just didn’t see this coming,” Gertler said.

MarketWatch 3 November 2022

https://www.marketwatch.com/story/why-did-inflation-surge-to-a-40-year-high-here-are-4-causes-of-the-worst-monetary-policy-mistake-in-years-11667318263

 Inflation targeting has been successful because it managed to anchor expectations — until it did not.

Wolfgang Munchau FT 19 July 2020

https://englundmacro.blogspot.com/2020/07/the-troubling-bit-is-that-these.html

 

What is the “Washington Consensus? Did it fail?

https://englundmacro.blogspot.com/2021/09/what-is-washington-consensus-did-it-fail.html

A new Washington consensus

https://englundmacro.blogspot.com/2021/04/a-new-washington-consensus.html