Monetary policy is not ‘impotent’ – BoE’s Broadbent
Bank of England deputy governor Ben Broadbent sought to defend central bankers from the charge of “monetary impotence” in remarks on March 4.
Broadbent said he believed the “scepticism” was “overdone”, and warned the view that monetary policy had lost its power “carries quite a bit of risk with it” as it could “encourage inaction”.
Broadbent presented several pieces of evidence that monetary policy works. Successful inflation targeting will tend to flatten out the relationship between
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