And far from fearing inflation, the problem actually facing central banks is how to avoid sliding into deflation. But these take the form not of some dramatic collapse, but of a series of subtle but important adjustments in central bank policy. Central banks responded with dramatic asset purchases, known as quantitative easing. Earlier this year, at the height of the Covid-shock, Australia’s central bank began doing something similar. What central banks do is becoming more complex, more diverse and more multipolar.

Source: The Guardian September 09, 2020 07:52 UTC