Central banks are facing a credibility trap

Central banks are being forced to govern through exceptions in an era in which rule-following (particularly the holy grail of the 2% inflation target) has become the ultimate source of policy credibility. As the potential for renewed economic crisis continues to grow, this credibility trap will only grow – as central bankers and governments find themselves lurching from exception to exception, refusing to question the neoliberal rules that no longer seem to apply.… Read More Central banks are facing a credibility trap

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