‘Strict inflation targeting is past its expiry date’ – Klaas Knot

Klaas Knot
Klaas Knot: "the inflation process has become more difficult for us to control"
Photo: DNB

Central banks face factors beyond their control, such as global trade and technological change, that make hitting a precise inflation target unfeasible, says the president of the Netherlands Bank.

In a recent interview with Central Banking, DNB’s Klaas Knot says globalisation has transformed the supply side of the world economy, weakening the link between central bank policies and inflation’s behaviour.

He points to the entry of China into the World Trade Organization in 2001 as one of the key

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