‘Strict inflation targeting is past its expiry date’ – Klaas Knot
DNB president stresses the limits of central banks’ ability to micromanage inflation
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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