Monetary policy frameworks need modifying, former Fed governor says

Federal Reserve

With lower neutral interest rates in advanced economies and subsequently a greater risk of low inflation, central banks should consider modifying their flexible inflation-targeting regimes, former Fed governor Frederic Mishkin tells Central Banking.

Mishkin believes that although the flexible inflation-targeting framework is not obsolete, there are some key adjustments that would help to solve the problem central banks face with a lower neutral interest rate.

“I think that if you want to move

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: