It’s prices stupid: how inflation targeting has failed electorates

Quick Summary:

It may well be time for governments and central banks to revisit their monetary policy mandates.

For a start, headline inflation matters to people more than “core” — current policy may be targeting the wrong variable.

In this framework, policy targets a constant rise in the level of prices over time, so that if prices rise above that rate, policy has to respond sufficiently to reverse any price level divergence.

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Article Details

Author / Journalist: Ian Harnett

Category: MarketsFinanceInvesting

Markets: United StatesFrance

Topics: Price Prices Targeting Cent Time Policy Inflation Framework Central Banks Been

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-25 @ 05:00:01 (11 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 811 words

Reading Time: 5 minutes read

Sentences: 40 lines

Sentence Length: 21 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 23814441

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Official Website: ft.com

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