Chief Economist´s Comment - Sunday Wrap

  • I’ll remind you of the better economic outlook, but the still missing inflation.
  • I’ll argue that after almost a decade of too low inflation, the limitations of inflation targeting have been exposed, which has made central banks less powerful.
  • I’ll discuss what to do about the too-low inflation, including the role of fiscal policy and the illusion of independent monetary policy in a global world (for anyone apart from the Fed).
  • I’ll conclude with what this means for European fiscal and monetary strategies – and the probability that we’ll get what it takes.

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