The Threat to the Central-Bank Brand
For the last 30 years, Western central banks have used their "brand" to help maintain low and stable inflation: by signaling their intention to contain price pressures, they would alter expectations and behavior. But, as corporate executives know, brand management is a tricky affair, particularly when popular sentiment overshoots.
https://prosyn.org/2dO9M1f
NEW YORK – The “branding” of modern central banking started in the United States in the early 1980’s under then-Federal Reserve Board Chairman Paul Volcker. Facing worrisomely high and debilitating inflation, Volcker declared war against it – and won. In delivering secular disinflation, he did more than change expectations and economic behavior. He also greatly enhanced the Fed’s standing among the general public, in financial markets, and in policy circles.