Monetary Policy Strategy Reviews a Disappointment

In my latest column in the Financial Times, I argue that the policy framework reviews under way at the Federal Reserve and now the European Central Bank are the monetary equivalent of swimming upstream: a lot of energy will be expended, but they won’t really get anywhere. To the extent that these reviews continue to focus on tweaking inflation targets as a strategy, they will be largely pointless. I offer up some alternative tools and strategies that might be more useful.

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