I have long argued that central bankers, especially those elevated to superstardom by supporters, have appropriated far more than their share of credit for the long period of macroeconomic stability since the early eighties. Two factors to be borne in mind. One, central banks were aided by several critical inflation lowering tailwinds in the world economy - globalisation and integration of markets, expansion of trade on the back of container shipping etc, supply chain unbundling due to the ICT revolution and lower transportation costs, the emergence of China as a low-cost supplier, savings glut in developing countries due to demographic trends etc. Two, it's generally far easier to keep the ship running when waters are calm than to navigate when things turn choppy.
False attributions and monetary policy making
False attributions and monetary policy making
False attributions and monetary policy making
I have long argued that central bankers, especially those elevated to superstardom by supporters, have appropriated far more than their share of credit for the long period of macroeconomic stability since the early eighties. Two factors to be borne in mind. One, central banks were aided by several critical inflation lowering tailwinds in the world economy - globalisation and integration of markets, expansion of trade on the back of container shipping etc, supply chain unbundling due to the ICT revolution and lower transportation costs, the emergence of China as a low-cost supplier, savings glut in developing countries due to demographic trends etc. Two, it's generally far easier to keep the ship running when waters are calm than to navigate when things turn choppy.