Cecil Bohanon & Nick Curott: Average inflation targeting was never a good idea

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One thought on “Cecil Bohanon & Nick Curott: Average inflation targeting was never a good idea

  1. Yes, we need to cool the economy a bit by raising interest rates but we also need to recognize that this hurts people as well. And it’s a bit of a stretch to blame current inflation on average inflation targeting when continuing supply chain bottlenecks and war are having an obviously large effect on prices both here and abroad. Changes in oil prices alone explained half of the increase in inflation over the last reporting period. They have since moderated but a developing challenge is the rise in rents due to housing shortages. Which will be made worse by the rise in interest rates. So let’s get the diagnosis right and then carefully apply remedies so as not to make the problem worse.

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