Inflation targeting under stress
As the financial turmoil unfolds, policymakers around the world are striving first and foremost to secure adequate liquidity. After relying on case-by-case rescue operations, since early October, major central banks and governments around the world have adopted a much-needed comprehensive and cooperative approach - including a coordinated cut in interest rates - to restore confidence among financial institutions and to contain the effects of brutal deleveraging. Massive injections of liquidity
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