The risk of raising the UK central bank's inflation target when price increases are out of control is obvious. But doing so might give policymakers a little more flexibility, and bring about a more stable monetary-policy regime in the longer term.
LONDON – The performance and mandate of the Bank of England have become central issues in the contest to succeed Boris Johnson as leader of the Conservative Party, and therefore as the United Kingdom’s prime minister. But with recent reviews of other leading central banks offering little guidance amid today’s surging inflation, it might make sense to revive an old idea for reforming the prevailing anchor for monetary policy.
LONDON – The performance and mandate of the Bank of England have become central issues in the contest to succeed Boris Johnson as leader of the Conservative Party, and therefore as the United Kingdom’s prime minister. But with recent reviews of other leading central banks offering little guidance amid today’s surging inflation, it might make sense to revive an old idea for reforming the prevailing anchor for monetary policy.