BoE’s Forbes calls for rethink of exchange rate pass-through
Monetary policy-makers have 'surprisingly poor' understanding
Monetary policy-makers need to improve their "surprisingly poor" understanding of how exchange rates pass through to inflation, Bank of England (BoE) monetary policy committee (MPC) member Kristin Forbes said today (September 11).
In remarks to a conference hosted by the University of Cardiff, Forbes criticised central bankers' reliance on incomplete models of the exchange rate's impact on inflation, and outlined what she called a "fundamentally new approach" to estimating pass-through.
"It is
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