Central banks ‘behind the curve’ on inflation, warns Goodhart
Charles Goodhart says stagflation is the most likely outcome in the coming years
Central banks in advanced economies have fallen “way behind the curve” in tackling inflation, exposing them to a serious risk of stagflation in the years ahead, Charles Goodhart warned today (March 29).
Goodhart, emeritus professor at the London School of Economics, said central banks had failed to forecast inflation accurately in 2021, and had been “overly optimistic” about inflation expectations being anchored. Workers in the US and UK are already demanding higher wages, which will likely
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