Higher inflation was tolerated only to protect growth because of the major shocks of the past few years. An inflation targeting regime where the nominal repo rate responds to expected inflation to ensure appropriate real repo rates is adequate to credibly anchor inflation expectations. An appropriate real repo rate is required, not a ‘high nominal repo rate’.
Subscribe to our mailing list to get the latest magazine!
23 hours ago
2 days ago
3 days ago
4 days ago