New Economy Forum
All Brakes and No Engine, Central Banks Seek New Inflation Ideas
- Prices keep falling short, spurring rethink at Fed and beyond
- Debate ranges from target tweak to ‘rip it up and start again’
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Adam Posen grabs an imaginary flagpole with two hands and waves it back and forth in his office at the Peterson Institute for International Economics in Washington. “We want inflation to go up!’’ he shouts, as if issuing orders from some central bank rooftop. “Inflation! Go up!’’