Rethinking inflation targets

Robert Gay | Fenwick Advisers | 28 May 2019

Central banks are not equipped to tackle the structural forces that underlie the deflationary bias of today's global economy. The big issues are income inequality in both the developing and emerging economies, excess saving especially in East Asia, persistent trade imbalances, the human cost of rapid technological advances, and climate change.¹ All these factors weigh on growth prospects and have undermined the effectiveness of monetary policy in achieving full...