Fed’s Kohn attacks higher inflation targets
Donald Kohn, the departing vice chairman of the Federal Reserve, has rebuked calls for higher inflation target.
Olivier Blanchard, the chief economist at the IMF, recently mooted raising inflation targets from 2% to 4% to limit difficulties in setting policy at the zero bound. His ideas have rankled with several senior central bankers and Kohn on Wednesday added his voice to the chorus decrying Blanchard's suggestion.
Kohn acknowledged that hitting the zero bound presented challenges to monetary
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