Tag Archives: inflation targeting
10-Year retrospective: Lesson 3
Gradually, inch by painful inch, the central bankers are losing their clothes – the comforting ideology that has enveloped them like a warm garment for more than a generation. This is the ideology, or “regime”, of central bank independence and inflation targeting (CBI+IT). Oh, how shy they are! Look how they hold onto any scraps!…
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Mark Carney tries on his new hats
As predicted in The Money Trap, central banks are in process of ditching inflation targeting as a monetary rule. Needless to say, this is not how they see it. At the Bank of England, Mark Carney thinks he looks fancy wearing the new hats George Osborne has given him. He tried them on…
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Regulation at a dead end
Last week Charles Goodhart uttered what I called his cry of despair (See RP’s Diary 13/01/13); now it is BOE’s Andy Haldane’s turn. Goodhart has realised that we are running out of monetary policy models – rules or frameworks like inflation targeting (IT) by which central banks steer interest rate policies. He warns of…
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