John Williams, the director of research at the San Francisco Federal Reserve, has said that central banks may need to up their inflation target to as high as 4% in order to stave off the dangers of the zero lower bound.
In a paper presented at a Brookings Institution conference on Thursday, Williams said the macroeconomic costs of the zero lower bound necessitated an inflation target of between 2% and 4%.
The economist said a 2% target would act as a sufficient buffer against the zero lower-boun
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