Time to look on the supply side of life
The US Federal Reserve is re-evaluating inflation targeting as a method of supposedly keeping the global economy within predictable limits - and not before time
In February, the US Federal Reserve embarked on a review of its inflation-targeting framework. The discussion is timely and could set the stage for other central banks to do the same. The theory behind inflation targeting is pretty simple. Central banks set a publicly known inflation target which the central bank achieves by changing short-term interest rates (up or down). If inflation is too low, the central bank cuts interest rates and stimulates ...
