Carstens calls for return to ‘region of stability’
Short-term thinking has led to increasingly painful trade-offs for policy, BIS chief says
Policy-makers must break their current “mindset” and take action to move their economies back to a “region of stability”, Bank for International Settlements general manager Agustín Carstens said on April 17.
Carstens said structural forces had for years covered up the usual warning signs that indicate when policy is straying from the stable region. Most notably, globalisation had allowed aggregate supply to flex in response to aggregate demand, meaning aggressive economic stimulus would not
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