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Demographics force central banks into balancing act – Goodhart

Panel weighs risks to central bank independence from fiscal pressures, in part due to ageing societies

Charles Goodhart
Charles Goodhart
Lasse Skog/Global Utmaning (http://bit.ly/3ZB452i)

Demographic change could threaten central banks’ mandates, as fiscal dominance may force them to trade off inflation control and financial stability, economist Charles Goodhart warned during a panel discussion on September 2.

Rising life expectancy, Goodhart warned, is not the problem: we should be worried about healthy life expectancy. Fiscal and productivity pressures do not arise from healthy older people, but the increasing share who spend a significant number of years in care, he said.

“If

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