The past decade or more has been a period of very low consumer price inflation. In both the developed and the developing worlds, inflation (and the volatility of inflation) has been at levels not seen for a generation. And the world economy has, by and large, prospered greatly in this environment of low volatility and low absolute inflation.

Central banks have taken a great deal of the credit for this achievement, and stand at the pinnacle of their reputation. Governors are the emperors of the