Test for current model of policymaking
Is there a case to be made that some of the trade-offs facing central bankers in Europe and the United States are sufficiently elusive to challenge the current consensus on how monetary policy should be conducted? Might they take risks with inflation on the side of favouring growth? Can a move away from strict adherence to policy rules be justified by changing market dynamics?
These questions go to the heart of the dilemmas currently facing central bankers on both sides of the Atlantic. For this
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