EXCLUSIVE: We must review how monetary policy impacts prices, says Plosser


Central bankers must renew their interest in the monetary transmission mechanism if they are to better understand the links between policy decisions, asset prices and inflation, Charles Plosser, the president of the Philadelphia Federal Reserve, has said.

"In order to probe further into this question about imbalances and asset price movements, we need to go back and think harder about the monetary transmission mechanism. We need to ask ourselves how monetary actions show up over time in financia

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