Central banks across the planet are engaging in a robust agenda that would
have been unrecognizable just a few years ago. Quantitative easing, macro
prudential monitoring, asset market support in Europe have all made it much more
difficult to understand what a central bank does and does not do.
Can central banks easily mop up liquidity and shrink their balance sheets
when the world economy begins to recover, or will inflationary dynamics emerge?
In the mystical realm of money, are central banks courting controversy that will
threaten their credibility and stature within society? If they lose their
leading role what will markets condition their expectation upon?
- Professor, London School of Economics (Paper
- Chief Economist of Nomura Research Institute (Paper
- Distinguished Fellow, Fung Global Institute
- President of the Peterson Institute for international Economics
- President, Fung Global Institute
[NGDP targeting fans may be interested in what Goodhart has to say.]