Permanent or transitory? Officials wrestle with inflation uncertainty

Bailey warns of possible damage to credibility, but Carstens urges caution amid high uncertainty

Andrew Bailey
Andrew Bailey
Photo: Bank of England

Senior central bankers and other officials continue to wrestle with the challenge of understanding inflation dynamics – and the even bigger problem of deciding what to do.

Central bankers face a dilemma as inflation rises around the world. On the one hand, climbing prices threaten their hard-won credibility. On the other, much of the rise in inflation comes from the supply side, which is generally considered out of reach of monetary policy instruments.

“Monetary policy cannot solve supply-side

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.