When the struggle is a strategic choice - inflation and wicked problems
urbanomics.substack.com
Arguably the most important current macroeconomic debate is about the persistence of inflation. How persistent will it be? What should be done to address this persistent inflation? The challenge facing policymakers in governments and central banks is that of engineering a soft landing and bringing inflation under control without engendering a recession. The critical part is bringing inflation under control. Economic orthodoxy has become wedded to the faith that inflation is under control when it's below 2%, and therefore as long as it stays higher than 2% inflation remains a problem. Policymakers are forced into accepting this orthodoxy by both the economists and monetary policy experts advising them as well as the market expectations of what constitutes stable inflation.
When the struggle is a strategic choice - inflation and wicked problems
When the struggle is a strategic choice …
When the struggle is a strategic choice - inflation and wicked problems
Arguably the most important current macroeconomic debate is about the persistence of inflation. How persistent will it be? What should be done to address this persistent inflation? The challenge facing policymakers in governments and central banks is that of engineering a soft landing and bringing inflation under control without engendering a recession. The critical part is bringing inflation under control. Economic orthodoxy has become wedded to the faith that inflation is under control when it's below 2%, and therefore as long as it stays higher than 2% inflation remains a problem. Policymakers are forced into accepting this orthodoxy by both the economists and monetary policy experts advising them as well as the market expectations of what constitutes stable inflation.